Cabinet to consider 51 p.c. FDI in multi-brand retail

• Government is all set to give its approval to 51 per cent Foreign Direct Investment (FDI) in the multi-brand retail sector.
• The Government is proposing some safeguards to ensure that non-serious players and fly-by-night operators are not entertained. To this end, any player who seeks entry into the Indian market will be required to invest a minimum of Rs. 500 crore. The Government is also seeking certain other investment commitments, including establishing backend cold chain outlets.
• The Ministry of Consumer Affairs and Public Distribution initially suggested a cap of 49 per cent FDI in multi-brand retail, while the Micro, Small and Medium Enterprises Ministry's recommendation is for 18 per cent FDI. But the recent skyrocketing of food prices — especially those of onions — and the declining inflow of FDI have opened a door for the Government to take a more ambitious decision on the prickly issue.