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...

-The Hindu   The Bharatiya Janata Party is unambiguous in opposing the government move to throw open the retail sector to Foreign Direct Investment. The party believes that allowing foreign investment in multi-brand retail would adversely impact the retail sector, which is growing, and put the country's entire food chain system into the hands of foreign firms. At a news conference here, leaders of the Opposition in the Lok Sabha and the Rajya Sabha,...

-The Economic Times   With the entry of foreign supermarket players, farmers across India's six lakh villages stand to gain from greater market access, higher profits, better technology and direct linkage with consumers.  "Direct purchase from farms has hugely benefited small farmers like us who were not getting good returns by selling in the local mandi," said Abdul Majid, from Malerkotla in Punjab, who has been selling vegetables from his one-acre farm to...

-The Indian Express   Reserve Bank of India Governor D Subbarao on Tuesday cautioned that policies — the significant increase in rural wages triggered by the MGNREGS and inflationary implications of the proposed Food Security Bill — aimed at inclusive growth can stoke inflationary pressures at any rate in the short-term. “The need for making growth inclusive is incontestable, but it is important to recognise that policies aimed at inclusion can stoke inflationary...

-The Indian Express   The finance ministry has come to an agreement with the department of industrial policy and promotion about what the government’s policy towards foreign direct investment in retail should look like. This means the retail FDI proposal will be placed before the cabinet soon, and hopefully will be cleared as soon as possible. Currently, only 51 per cent foreign investment is permitted, and only in stores selling a single...