Allow FDI across retail biz: Dept of Agriculture to CoS

The Department of Agriculture has called for widening the scope of the proposal anchored by the Department of Industrial Policy and Promotion (DIPP). This push was made in the meeting of the Committee of Secretaries (CoS), which took place on July 22. The CoS had favored allowing foreign direct investment (FDI) in multi-brand retail. CNBC-TV18's Rituparno Bhuyan reports.

The Department of Agriculture gave a very interesting feedback to the CoS. It said that FDI should not be restricted to multi-brand retail sector, but it should be allowed to the entire retail sector. The reason that it gave was that if FDI is restricted to multi-brand retail sector, then unbranded Indian farm products will not be sold in this FDI funded frontend stores. Even branded Indian farm products will not be sold in such formats, unless they are sold internationally. Hence, the intended benefits of this particular proposal will not accrue to both Indian farmers and Indian consumers. So, in a way, this particular feedback could actually take care of some of the concerns that the opposition parties raised today in Parliament. Of course it remains to be seen if the Cabinet Secretary, who is finalising the minutes of this CoS meeting, incorporates this particular feedback in the final minutes.