Global retail chains looking to set up shop in India may face several challenges such as delay in the implementation of goods and services tax and restrictions imposed by the Agricultural Produce Marketing Committee (APMC) Act, besides political opposition. These hurdles can be roadblocks in providing real benefits to farmers and consumers as intended by the government in opening the multi-brand retail sector to foreign direct investment. “GST (goods and services tax)...

 Having publicly objected to the Communal Violence Bill drafted by the Sonia Gandhi-led National Advisory Council (NAC), the Narendra Modi-led Gujarat government has now sent its strong objections to Sonia’s pet project, National Food Security Bill, terming it against the sanctity of the federal structure of the Constitution. Gujarat has objected to provisions that allow the Centre to prescribe terms and conditions for the appointment of district grievance redressal officers, empowers...

-The Telegraph The BJP has slammed the Centre’s move to allow FDI in multi-brand retail, alleging this would destroy self-employment, create monopolies, facilitate foreign takeover of farming units and impair local manufacturing. Sources in the BJP, which has a following among small and medium traders who own the most of the mom-and-pop “kirana” shops, warned that this section would start an agitation as the Centre’s decision amounted to the “Wal-Martisation” of India. The...

-Reuters   India's growth story is still "credible" and the move to open up the economy to global supermarket chains will help growth and control inflation, RBI governor Duvvuri Subbarao said on Friday. "It's commendable that government has taken the initiative. Let's hope that it will improve the logistics chain and supply chain management in agriculture," Subbarao said in a speech in Chandigarh. Late Thursday, the government approved 51 percent foreign direct investment in...

The Reserve Bank of India on Friday expressed the hope that foreign direct investment in multi-brand retail would help in bringing down inflation. “...Certainly it (FDI in multi-brand retail) would help improve supply chain and we hope it should also contribute to reducing inflation,” Reserve Bank of India Governor D. Subbarao told reporters on the sidelines of a memorial lecture here. Dr. Subbarao said 51 per cent FDI in multi-brand retail would...