BackNirmala Sitharaman says no to FDI in multi-brand retail
Commerce minister Nirmala Sitharaman says govt will soon come out with guidelines on FDI in e-commerce
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New Delhi: Commerce and industry minister Nirmala Sitharaman on Saturday said “no" to allowing foreign direct investment in multi-brand retail but indicated that the government would soon come out with guidelines on FDI in e-commerce.
“FDI in multi-brand retail no, no," she said when asked to clarify the government’s position on FDI in multi-brand retail trading.
However, as per the current policy, 51% FDI is permitted in the multi-brand retail sector.
Sitharaman also pushed for an interest rate cut ahead of the Reserve Bank of India’s (RBI’s) monetary policy review next week, saying availability of affordable credit was necessary to boost manufacturing.
“We are working with the RBI. The RBI has successfully managed the inflation...It is being bit cautious on interest rates. So I hope credit is available in India at an affordable rate because internationally credit is absolutely cheap," Sitharaman said. “Even if it is not cheap credit, I would strongly push for an affordable credit available for Indian industry only then the revival be (happen)," she added.
The Minister was responding to questions of netizens during a 90-minute Talkathon.
Sitharaman also said that she held consultation with different stakeholders, including industry and associations on FDI in the e-commerce sector. Next month, the ministry will meet representatives of the state government’s on the issue, she said.
“E-commerce is a very technology driven. It has a very big play and lot of dynamism (is there) in the market. However, issues (in the sector) are several layered and they are very complicated because there are issues related to taxation and the e-commerce definition is also getting wider in scope. So I am spending quite sometime on it. Soon, we will come up with something to state our position much clearer," the minister said.
She added that FDI in e-commerce should not become a backdoor entry for multi-brand retail.
The statement assumes significance as a tussle is going on between online and offline retailers. At present, 100% FDI is allowed only in business-to-business (B2B) e-commerce and not in the retail segment.
Traders body CAIT had called for a probe in the business model and trade practices of e-commerce companies to find out how they are offering huge discounts.
Replying to a question on small and medium enterprises, she said the government is talking with commercial banks to ensure that affordable credit is given to the sector.
On improving India’s ranking on ease of doing business, she said the ministry has taken several steps and by 30 June more central and state government services would be integrated with the e-Biz portal, which provides one-stop clearance platform for investment proposals. PTI
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