Thursday, December 2, 2010

Relaxed FDI norms in retail sectors

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Pitching for 100 per cent opening of Foreign Direct Investment (FDI) in the Indian retail sector, US retail giant Wal-Mart Stores Inc said such a move will help in containing inflation.

"Wal-Mart has expressed that 100 per cent FDI would be the solution for all constituents and stake holders (in the Indian retail sector)," Wal-Mart Stores Inc President and CEO Mike T Duke told reporters.

He, however, said Wal-Mart respects the India's calibrated approach towards opening the retail sector to FDI.

India currently allows 51 per cent FDI in single-brand retail, but none in multi-brand. Recently, the government had initiated a discussion on opening FDI in multi-brand retail.

The government has also relaxed FDI norms thereby lifting restriction that required retailers to source products from FDI-backed group wholesale firms only for internal use.

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