New Delhi: The NDA government will not allow foreign direct investment in multi-brand retail, said the Commerce and Industry Minister Nirmala Sitharaman.
"We are clear that FDI will not be allowed in multi-brand retail trade. We shall not entertain FDI in MBRT. There is no ambiguity. There is no confusion on this," she said while addressing a press conference to mark 100 days of the new government, as reported by PTI.
Sitharaman said her party, BJP, has clearly articulated its position on the MBRT and had won the elections on the basis of the manifesto.
The UPA government had opened the multi-brand retail sector for foreign investment and allowed up to 51% FDI in the sector. The BJP had opposed the policy.
The politically sensitive multi-brand retail segment in India employees millions and is dominated by mom-and-pop stores.
While the new government is against FDI in the sector, it has not yet initiated any move to scrap the policy of allowing FDI in multi-brand retail approved by the UPA government.
During the UPA regime, only one investment proposal of UK-based Tesco was cleared for the sector.