That the Indian government's decision to implement Foreign Direct Investment in India state-by-state was myopic is now evident. PTI reports that Rajasthan is the latest government to change its stance after a change in government, where the BJP has taken over from the Congress. With this, Rajasthan follows Delhi in withdrawing support to FDI in retail, after the Congress lost to the Aam Aadmi Party. This means that only 10 other states remain: Andhra Pradesh, Assam, Haryana, Kashmir, Maharashtra, Manipur, Uttarakhand, Daman & Diu and Dadra and Nagar Haveli. The Indian government had introduced FDI in Multi-brand retail in September 2012, with the following riders: firms are allowed to buy up to 51% stake, with a minimum FDI limit is $100 million, companies have to invest half of that amount in infrastructure like cold-storage chains and warehouses, and that at least 30% of the goods to be sold will need to be sourced from local partners. Note that the Indian government already allows 100% FDI in business to business e-commerce ventures, and cash and carry wholesale trading. So far, only UK-based Tesco's proposal to invest in the sector has been cleared by the Indian government. The BJP Opposed To FDI In Multi-Brand Retail; Unclear On E-commerce We hope this isn't about cutting the nose to spite the face, in a state versus central government situation, but the fact is that the BJP had opposed FDI in e-commerce in India. It's view FDI in e-commerce is still not clear. Arvind Gupta,…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...