Multi-brand FDI may be relaxed

The Union finance ministry is understood to put forth an initiative that foreign retailers could be allowed entry into India without certain conditions, provided they do not hold a majority stake in the venture here. “There is a case for having an uncomplicated... simple policy” a government official told media officials. Meanwhile, an independent body on FDI policies has suggested that the investment limit in the retail sector should be raised to 74 per cent from 51 per cent currently. However, stringent pre-conditions for entry into the multi-brand sector and with only 11 states and union territories that have that approved the same, and are a major stumbling block to attracting foreign investors in this sector.