The central government claims that allowing foreign direct investment into India’s retail sector will benefit small farmers, expand employment and lower food inflation. What has been the experience in India with organised retail so far and what has been the global experience with FDI? Sukhpal Singh (sukhpal@iegindia.org) is currently at the Institute of Economic Growth, Delhi. After being under relentless attack for a week, the United Progressiv Alliance government was forced to...

Indian traders reject FDI in multi-brand retail and emphasise the need for a policy to regulate the labour-intensive sector. TRADERS across the country responded angrily to the Union Cabinet's decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail trade, disproving the arguments of the United Progressive Alliance (UPA) government and the assessment of corporate India, which had tried hard to make it appear that traders and...

The government is likely to recalibrate its retail foreign investment strategy, while simultaneously trying to bridge the political divide with allies and states. Government sources said with neither the opposition nor the allies, Trinamool and DMK, objecting to 100 per cent FDI in single-brand retail approved by the cabinet, the commerce and industry ministry would work on a notification to operationalise the decision. “Our understanding is we can work on rules for...

-The Times of India   Activist Swami Agnivesh on Saturday criticized Team Anna for provoking people against the Union Cabinet's decision to allow foreign direct investment (FDI) in retail. At a school function at Jaipur, he said Anna Hazare and his team were making "factually incorrect and irresponsible statements". "Statements with factual mistakes are preventing people from engaging in a healthy debate. People opposing FDI should discuss rather than play around with the...

Foreign retailers may have to reserve at least half of their jobs in superstores for rural youth and source more than the mandated 30% from micro and small industries as the government tries to salvage the big ticket but controversial economic reform.  An official said the government is likely to have a relook at a proposal that seeks to reserve at least 50% of jobs in foreign-owned superstores for those who...