Powered By Inc42 BrandLabs

Powered By Inc42 BrandLabs

Newly formed government led by Arvind Kejriwal in Delhi has recently announced its decision to withdraw permission for Foreign Direct Investment in retail. This move has made Delhi the first state to withdraw permission for FDI funded retail stores in the country.

Arvind Kejriwal government has written to the Department of Industrial Policy and Promotion (DIPP) on not allowing FDI funded stores in the state. The DIPP is now examining the letter sent by the Delhi government.

“This will discourage international retailers planning to enter India,” commented J Suresh, chairman of CII National Retail Committee over the Delhi Government’s decision.

Powered By Inc42 BrandLabs

Powered By Inc42 BrandLabs

The central government had opened multi-brand retail sector to foreign investment more than a year ago which allowed global retail giants like Walmart to open stores in India. However, the final decision to allow these firms to open stores in their respective states was left to the state governments itself.

Powered By Inc42 BrandLabs

Powered By Inc42 BrandLabs

The decision to withdrew the approval given by the previous congress led government on foreign Direct investment (FDI) in multi-brand retail in Delhi is being termed as anti-investment, “If one party reverses the decision of its rival dispensation upon change of guards, the policy and political risks for global investors would definitely increase in India, scaring them away,” says industrial body Assocham.

Apart from Delhi, states including Maharashtra, Jammu and Kashmir, Haryana, Rajasthan, Uttarakhand, Andhra Pradesh and Assam have in the past agreed to support the entry of foreign supermarket chains.

FDI in retail has been the hot topic of debate for quite some time now, not only between the political parties but also common people. Here are few tweets which came in after the Delhi government announced withdrawal of FDI in retail.


[Image via Indiaopines.com]

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.