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LATEST NEWS UPDATES | Govt writes to state CMs for FDI in multi-brand retail

Govt writes to state CMs for FDI in multi-brand retail

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published Published on Jun 22, 2012   modified Modified on Jun 22, 2012
-The Times of India

The government is moving swiftly to build a consensus over the move to allow foreign investment in the multi-brand retail sector with the commerce, industry and textiles minister Anand Sharma writing to three key state chief ministers of Uttar Pradesh, Punjab and Odisha to seek their support.

Sharma has been trying to build a consensus and has met several chief ministers to draw their support to the move. Some chief ministers have backed the move to open up the multi-brand retail sector, which has emerged as a test case for moving ahead with economic reforms. "I hope that being a chief minister who is known for his progressive outlook and global vision, you will recognize intrinsic merit of this policy and give your support and understanding in the matter," Sharma said in his letter to Odisha CM Naveen Patnaik.

"I look forward to your personal support in the rollout of this policy for the larger public good," the minister said. He said the government had taken a conscious decision of leaving the implementation decision to the states and the FDI policy cleared by the cabinet will be an overarching enabling policy framework and the state governments will be free to take appropriate decision on its implementation.

Sharma, who is in Russia for a bilateral meeting, also told businessmen that the government expects consensus to emerge in the coming weeks, which is expected to shore up investor sentiment and open up fresh business opportunities. "I am confident that the coming weeks will see the emergence of political consensus on liberalizing FDI in Multi-brand retail which will open immense opportunities," Sharma told Russian businessmen.

The minister also met Olaf Koch, CEO and chairman of the management board of METRO AG, a top global retail firm. Koch detailed the firm's expansion plans in India. He said the company will raise the number of their stores from 10 to 16 in the country. He is scheduled to meet M Ohlsson, CEO and president of Swedish home accessories firm IKEA. IKEA is keen to invest in India but wants the rules relating to sourcing of goods from small and medium enterprises in the single-brand retail to be diluted.

The Times of India, 22 June, 2012, http://timesofindia.indiatimes.com/business/india-business/Govt-writes-to-state-CMs-for-FDI-in-multi-brand-retail/articleshow/14327694.cms


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