Cabinet likely to approve FDI in multi-brand retail

The government is likely to approve 51 percent FDI in multi-brand retail on Thursday, a decision that will allow global mega chains like Walmart, Tesco and Carrefour to open outlets in India.
    
Opposing the move, Trinamool Conress MP and Railway Minister, Dinesh Trivedi has asked the government to call for an all party meeting before the cabinet meet on the issue.

Meanwhile, efforts are on to convince West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee to support FDI in multi-brand retail.
   
Commerce and Industry Minister Anand Sharma has spoken to Banerjee and "if needed, would meet her again," to remove her apprehensions on the issue, sources said.
   
Trinamool Congress is a key ally of the UPA government.
   
Banerjee, who is here since Tuesday night, had reportedly said her party would oppose the proposal for allowing foreign direct investment (FDI) in multi-brand retail in the Cabinet.
   
"Sharma will explain to her how the FDI would be beneficial for small farmers and try to remove whatever inhibitions she has on the issue," sources said.

Increasing the foreign investment (FDI) ceiling to 100 percent from the present 51 percent in single-brand retail is also on the agenda of the the Union Cabinet meeting, sources said.
    
Most of the ministries, including the finance and the textiles, are in favour of the industry ministry's proposal to open the politically-sensitive sector to foreign players and the Cabinet will take a final call, they said.
    
Earlier, a panel headed by Cabinet Secretary Ajit Kumar Seth had recommended 51 percent FDI in multi-brand retail with certain riders, like minimum investment of USD 100 million and local sourcing.
    
The decision on the issue is pending for over two-years as Opposition parties are against foreign investment in this sector. The USD 600 billion segment is dominated by small kirana (mom & pop) shops.
    
Opposition have expressed concerns that allowing majors global retailers would lead to unemployment among the unorganised sector.
    
The government had opened the single-brand retail for FDI way back in 2006 and ever since 60 foreign players have entered the country in joint venture with local firms.

Several global retailers are waiting in the wings to enter India's multi-brand retail segment.