New Delhi: The government will not allow foreign direct investment (FDI) in multi-brand retail, Commerce and Industry Minister Nirmala Sitharaman said Monday.
“We are clear that FDI will not be allowed in multi-brand retail trade. We shall not entertain FDI in MBRT. There is no ambiguity. There is no confusion on this,” Sitharaman said, addressing a press conference here on the initiatives by her ministry in the 100 days of the NDA regime.
Sitharaman said the Bharatiya Janata Party (BJP) has clearly articulated its position on foreign equity in multi-brand retail and won the elections on the basis of the manifesto.
“There is no conflict in our minds. We are clear that we do want FDI in multi-brand retail. It is just that we do not see there is a need for us to come out with any notification specifying this as we are not sitting on applications,” Sitharaman said.
The previous UPA government had opened the multi-brand retail sector for foreign investment and allowed up to 51 percent FDI in the sector, but the BJP does not intend to scrap this policy.
Pointing to the prevailing impression that e-commerce is a way to bring in FDI into multi-brand retail through the “back door”, Sitaraman said: “We do not allow FDI in e-commerce as well, as the policy is the same as that for multi-brand retail.”
