Expectations run high of foreign direct investment in multi-brand retail becoming a reality in India. The Committee of Secretaries (CoS) recently pushed up the upper limit to 51% in the retail segment. According to the permit, foreign retailers will have to dedicate at least 50% of their proposed investment to back-end supply chain infrastructure. They would further have to commit a minimum FDI of USD 100 million.
CNBC-TV18 has learnt that the Committee of Secretaries has now recommended a widening of the definition of "back-end" in which foreign retailers have to invest 50%. The secretaries have suggested the definition also include design improvement, quality control and packaging. Additionally, the CoS has suggested a relaxation in the monitoring of retailers investing in the back-end. As against the earlier proposal of RBI monitoring these investments, the secretaries have proposed self-certification by the investors. They say the accounts can be subsequently checked whenever required, but the investors must get a certificate from a chartered accountant. Also, the panel of secretaries says the government must have the first right to procurement of agricultural products. Did you miss? Allow FDI in multibrand retail in regulated fashion: IMGDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
