No change in India's foreign investment policy in retail

New Delhi, Nov 8 : There will be no change in the government's policy of a ban on foreign direct investment in multi-brand retail industry, Commerce Minister Anand Sharma said here Sunday.

"I have advocated for a single brand retail chain. I do not see any need for change in policy," Sharma said at the India Economic Summit of the World Economic Forum, referring to the 51 percent foreign equity permitted in single-brand retail chains by India.

He was speaking in the context of last week's meeting between visiting Wal-Mart chairman S. Robson and Prime Minister Manmohan Singh. Robson also met Sharma.

Wal-Mart, along with Bharti group, runs a cash-and-carry wholesale retail chain in India, and according to Sharma, will launch 40 new retail chains in the near future.

"I have met representatives from Wal-Mart. They are very happy and plan to open more chains," Sharma had told reporters at a joint briefing with visiting European Union Trade Commissioner Catherine Ashton Friday.

"This is not a time to revisit the norms," he had said.

India currently does not allow any foreign equity in multi-brand retail, while up to 51 percent overseas capital is permitted for single-brand chains.

This apart, foreign companies extending logistical and warehousing support are allowed 100 percent stake in Indian ventures.

--IANS