The Government has said that an early decision on allowing foreign direct investment in multi-brand retail trade will be taken after it gets recommendations of top secretaries on the issue.
“(Policy formulation) is a careful calibrated exercise.... Once recommendations formally reach my table...we will take early and appropriate policy decision,” Mr Anand Sharma, Commerce and Industry Minister said in Rajya Sabha.
The Minister said more investments will come in once the Government relaxes the foreign investment rules at the front-end.
Replying to concerns raised by members on issues like job losses following opening up of the sector to foreign retailers, Mr Sharma said the decision will be in “supreme” national interest and create millions of jobs across the country.
He said a Group of Secretaries, headed by the Cabinet Secretary, Mr Ajit Kumar Seth, last month made specific recommendations which are in the interest of all stakeholders, including farmers.
He said the Secretaries have recommended that at least 50 per cent of the investment and jobs go to rural areas and the entities with FDI should source at least 30 per cent of their requirements from the MSME sector. The proposed policy may require foreign investors to commit at least $100 million, of which 50 per cent may have to be invested in rural areas.