Mumbai: New rules requiring foreign supermarkets to set up their own warehouses and stores in India are likely to further delay the entry of companies like Walmart Stores Inc, increase costs and hurt cash-strapped local retailers eager to partner with foreign companies.
India allowed foreign chains to enter the country to set up retail stores in September 2012, but ambiguities in the policy means that so far, no foreign company has applied to the government for permission to set up shop in the $500 billion industry.
Under the new rules, the government late on Thursday said global supermarket operators cannot acquire existing assets of Indian companies and said the initial mandatory $100 million investment to set up supply chain infrastructure and stores must be new.
That means any existing supply chains, including those owned by a domestic retailer that a foreign company might look to buy, will not count towards the $100 million minimum. "In a nutshell this will delay everybody's plans," said Devangshu Dutta, who heads retail consultancy Third Eyesight in Bangalore. "Companies like Walmart, TESCO can acquire assets later on but not initially and that means more time to start their operations," he said....
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09:59 AM, Jun 08, 2013
New Delhi: In response to the DIPP's plea for clarity on FDI policy in multi-brand retail (MBR), the Cabinet issued clarifications which allow only 30-per cent sourcing for front-end stores and forbid the MBR entity from conducting any other form of distribution. The sourcing conditions are only for manufactured store-products and does not apply to the procurement of fresh produce. MBR entities are to make fresh investment for back-end infrastructure...
10:45 PM, Jun 06, 2013
New Delhi: The government on Friday said it has approved eight FDI proposals worth Rs 696 crore, including those of ACME Solar Energy, GETIT Infoservices and McKinsey & Company. The Foreign Investment Promotion Board (FIPB) cleared the proposal of ACME Solar Energy to bring in foreign investment worth Rs 275 crore, the Finance Ministry said in a statement. Besides, FIPB cleared GETIT Infoservices' proposal to receive foreign investment worth Rs...
07:26 PM, May 31, 2013
New Delhi: Investigation into whether US giant Walmart may have bribed Indian officials to gain wider access to the country's vast market has been closed due to lack of evidence, sources said on Sunday. Corporate Affairs Ministry has confirmed and said no evidence of lobbying was found. The one-man committee of Former Chief Justice of Punjab and Haryana High Court Mukul Mudgal probing the matter had submitted a report to...
05:59 PM, May 19, 2013
New Delhi: Talking about economic reforms, Gujarat Chief Minister Narendra Modi on Monday came out strongly in support of privatisation while addressing the first Think India Dialogue of Network18. Modi, however, opposed FDI in retail and defence, but backs foreign investment in other sectors and said government's role must be of facilitator in land acquisition. Modi said he favours privatisation but wanted to test the new model in Gujarat without...
07:49 PM, Apr 08, 2013
Most markets in Delhi will remain closed on Thursday. The Confederation of All India Traders (CAIT) have called for a 'Delhi trade bandh' to protest against FDI in retail. A rally will be held at Ramlila Grounds too later in the day. ...
09:15 AM, Mar 07, 2013
A day before the Budget, Finance Minister P Chidambaram will table the Economic Survey 2013-14 in Parliament on Wednesday. The main focus of the survey is likely to be on accelerating economic growth. The Central Statistical Organisation estimates project a 5 per cent growth this year, which is the lowest in a decade. Prepared by a team of economists, led by Chief Economic Advisor Raghuram Rajan, the Survey is likely...
07:57 AM, Feb 27, 2013
The Finance Ministry on Wednesday will consider four FDI proposals in single brand retailing, including that of Decathlon and Fossil Inc, worth Rs 750 crore. Proposals of French fashion brand Promod, crockery maker Le Creuset and sports giant Decathlon along with that of US-based accessories firm Fossil Inc are listed on the agenda of Wednesday's Foreign Investment Promotion Board (FIPB) meeting, an official said. ...
03:40 AM, Feb 13, 2013
US-based global retail giant Walmart on Thursday said it is studying the conditions related to India's allowing foreign direct investment in multi-brand retail before making the final announcement on its entry plans. ...
08:20 PM, Jan 24, 2013
The Supreme Court on Tuesday pulled up Central Government on allowing foreign direct investment (FDI) in multi-brand retail. The apex court while hearing a PIL against FDI in multi-brand retail asked the government to explain its view on impact of the policy on small traders. ...
12:57 PM, Jan 22, 2013
BJP on Friday said the last word has not yet been said on the FDI in multi-brand retail issue and the party would revisit the decision of the UPA government if it comes to power. ...
02:20 AM, Jan 12, 2013
One hundred per cent foreign direct investment is allowed in hotels and restaurants without approval of the Foreign Investment Promotion Board, a move meant to ...
05:57 PM, Dec 28, 2012
Lashing out at the UPA on the FDI in multi-brand retail, CPM General Secretary Prakash Karat on Wednesday said the Centre will pay a "heavy political price" for trying to impose it, which is "anti-national" and "anti-people". "I am confident that majority of the people in this country are against this policy and we are confident that in the coming days, the Congress and UPA government will have to pay...
08:51 AM, Dec 20, 2012
The Aam Aadmi Party (AAP) on Wednesday said there was not much difference between Congress and BJP when it comes to corruption, and accused Madhya Pradesh Chief Minister Shivraj Singh Chouhan of double-speak on FDI issue. ...
12:44 AM, Dec 20, 2012
The Samajwadi Party (SP) on Sunday alleged the UPA government at the Centre was conspiring to trap party supremo Mulayam Singh Yadav in the CBI net for not supporting the FDI in retail and a bill on quota in promotions. ...
09:30 PM, Dec 16, 2012
Speaking to Karan Thapar on Devil's Advocate Information and Broadcasting Minister Manish Tewari said legal action would be taken if it would be proved that Walmart committed aberrations. He insisted that lobbying is different from bribery and said that it is unfair the the Opposition stalls Parliament every day when there are no substantive evidence to prove that Walmart was at fault. ...
09:16 PM, Dec 16, 2012
Contending that FDI in retail was not the only solution to boost the economy, Bharatiya Janata Party chief Nitin Gadkari on Saturday said a strong political will is required to create a climate which encourages capital investment in the country. ...
09:03 PM, Dec 15, 2012
Senior Bharatiya Janata Party leader P Muralidhar Rao on Saturday said the 2014 Lok Sabha polls would be fought between the "Walmart front" and the nationalist or Swadeshi front with the UPA government going ahead with the FDI in retail sector. "The UPA and DMK, they stand for Walmart. I can call it a 'Walmart front." ...
07:16 PM, Dec 15, 2012
West Bengal Chief Minister Mamata Banerjee on Saturday countered Prime Minister Manmohan Singh's criticism of those opposing FDI in retail, saying she was with the common man who was "outdated". ...
05:16 PM, Dec 15, 2012
Key UPA constituent DMK, which supported Centre in the FDI vote in Parliament, on Thursday said attempts are on to provide "back-door entry" to global retail giant Walmart in the state even as Chief Minister Jayalalithaa had opposed FDI in multi-brand retail in the state. The DMK's Executive, which met here under party chief M Karunanidhi, said reports had suggested Walmart was in the process of establishing a commercial complex...
03:41 PM, Dec 13, 2012
