Source: www.fibre2fashion.com
India does not intend to change the existing foreign direct investment (FDI) policy related to multi-brand retail trade, according to Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek, who said the $650 billion retail sector is growing fast, holding huge potential for businesses. DIPP also favours a cut in corporate tax rate, he said.
Finance Minister Arun Jaitley had lowered corporate tax rate to 25 per cent for businesses with turnover up to ₹250 crore.
Abhishek was speaking recently at a conference on 'MNCs and India: Creating Mutual Value' organised by the Confederation of Indian Industry (CII) in New Delhi, according to a news agency report.
The current FDI policy permits overseas players to hold 51 per cent stake in an Indian multi-brand retail company. So far, only one foreign company, Tesco, has been permitted to open stores under this policy under the previous United Progressive Alliance government.
The Confederation of Indian Industry (CII) had recently urged the government to permit 100 per cent FDI in multi-brand retail trade, provoking strong opposition from the Confederation of All India Traders (CAIT).
Abhishek urged the industry to provide convincing arguments and detailed analysis while recommending policy changes. (DS)
