Investment rules could be eased

Commerce and Industry Minister Anand Sharma has promised foreign retailers that it will review the stringent investment conditions imposed on foreign investment in the multi-brand retail sector after its much-hyped opening up of sector failed to enthuse them. “The objective of the policy is to encourage investments, job creation, benefit to the farmers and benefit to the consumers. Therefore, we have sufficient space to address those concerns, bring in the clarity, and an early and appropriate view will be taken so that the guidelines can accordingly be given out,” Sharma said after a two-hour long meeting with the retail industry recently. Representatives of both foreign and domestic retail companies, including Walmart, Tesco, Metro, Carrefour, Bharti, Aditya Birla Group, Tatas, Reliance and Pantaloon were present at the meeting. The industry raised major points like the 30% sourcing issue. It also wants agro-sourcing to be a part of the minimum 30% sourcing and sought a relaxation in the rules for investment in the back-end infrastructure. The current policy says that foreign retailer must bring at least $100 million investment and 50% of this must go into new back-end infrastructure. The Department of Industrial Policy and Promotion the administrative department for FDI policy, will now approach the Cabinet with changes in policy.