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Our Bureau

New Delhi , Nov. 22

A STUDY conducted by The Indian Council for Research on International Economic Relations (ICRIER) has suggested that 49 per cent foreign direct investment (FDI) be allowed in the retail industry, pointing out that foreign players have already entered the Indian market through various loopholes in the regulation. Currently, the Government does not allow FDI in retailing.

ICRIER made these observations in a draft report of the study `Foreign direct investment in retail sector: India', which was presented to the Ministry of Consumer Affairs on Monday.

Making a case for allowing up to 49 per cent FDI, the council said this would provide an opportunity for domestic players to enter into joint venture agreements (JVs) and the entry of foreign players would ease financial pressures and bring in technical knowhow and best-management practices in this industry. Also, domestic players will be able to retain majority ownership of JVs in case the FDI limit is not raised beyond 49 per cent, the institute said.

More Stories on : Retailing | Foreign Direct Investment

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