Modi Government May Allow Hundred Per Cent FDI In Retail Only If Products Are “Made In India”

The Narendra Modi government is considering to promote its flagship Make In India scheme by allowing 100 per cent foreign direct investment (FDI) in multi-brand retail—only if the products are "Made in India".

According to a report in the Mint, a government official familiar with the matter has said that a final decision on the matter would be taken after wider consultation.

Also as per the report, the current proposal is expected to be largely different from the UPA policy and this plan is unlikely to be termed “FDI in multi-brand retail” as the Bharatiya Janata Party (BJP) is opposed to the idea and had promised in its 2014 election manifesto to not allow this.

Here are the key points that set this policy apart from the one drafted by UPA:

a) It will not allow imported items to be sold by multinational supermarket chains such as Walmart Stores Inc.

b) There is also a possibility that it will likely do away with city-specific and sourcing restrictions put by the UPA government. The UPA had restricted such supermarkets to cities with a population of more than 1 million and mandated that they source 30 per cent of their products from small and medium enterprises.