Cabinet okays 100% FDI in single brand retail

Last year too, there was a proposal to permit 100 per cent FDI through automatic route in single brand retail trading. Currently foreign players, who were willing to invest more than 49%, had to undergo a stringent approval process.

As per the decision, Government approval is no longer required for FDI in Single Brand Retail Trading, SBRT. Currently, FDI, upto 49 per cent is allowed under automatic route but any investment beyond the limit required government approval. Government has now decided to permit 100 per cent FDI under automatic route for SBRT.

Meanwhile, Congress has accused the government of adopting double standards on allowing 100 percent FDI in single brand retail.

Senior Congress leader Anand Sharma claimed that 100 per cent FDI in single brand retail was notified during the previous UPA government and the only change made now is to allow it through the automatic route. He said the government talks of Make in India, but now says local sourcing is not required.

CPI(M) has also opposed the Union Cabinet's decision to allow 100 percent FDI in single brand retail trade. In a statement, party polit bureau said, the step will harm domestic retail traders and shopkeepers.