51% FDI in multi-brand retail is important 1st step in India : Walmart

Bentonville: US retail giant Walmart Corporation has welcomed the Indian Government?s decision to allow 51% Foreign Direct Investment in Retail sector. ?We believe that allowing 51 percent foreign direct investment in multi-brand retail is an important first step for the Government of India to further open this sector. We are grateful that the Government has realized and appreciated the value that we will bring to strengthen the Indian economy. This policy change will allow us to connect directly with the consumer and save them money. By being ?stores of the community,? we will also help them live better. We are willing and able to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation. Through these, and several other initiatives, we hope to make a positive impact on the lives of the people of India,? says the company?s statement.

Braving severe political opposition, Indian Cabinet on Friday approved the proposal of the Department of Industrial Policy & Promotion for permitting FDI in multi-brand retail trading with riders. Hanging in fire after first approval on 24.11.2011, the implementation of the proposal had been deferred after stiff resistance from political allies and traders association.

The multi brand retail chains can open their outlets only in states that allow it. Other than Bihar, Karnataka, Kerala, Madhya Pradesh, Tripura and Odisha; other states have no objection. The chains can be opened in cities with population 10 lakh as per 2011 Census and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities. The chains will be responsible for connectivity and parking. In states and Union territories with less than 10 lakh population, the retail sales outlets may be set up in the cities of their choice, preferably the largest city. The 10 Km criteria applies here too. At least 50% of total FDI brought in shall be invested in `backend infrastructure` within three years of the induction of FDI.

Wallmart is currently engaged in wholesale trade in India with India company Bharti.

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Source: http://frontierindia.net/51-fdi-in-multi-brand-retail-is-important-1st-step-in-india-walmart

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