FDI in multi-brand retail: Non-food items may get nod

Union Food Processing Minister Harsimrat Kaur Badal has said the government will consider allowing Indian-made non-food items under Foreign Direct Investment in multi-brand retail, reports CNBC-TV18's Rituparna Bhuyan."As long as the products are being made in India, at least it is generating employment," Badal said. "If jobs are created and revenue is generated, then it is a win-win situation and we definitely need to look into it."The minister said several models were being analysed to allow non-food items through MBR route.Claiming that several European companies have show huge interest, sources in the ministry said foreign companies want to test the market for food products before starting full-fledged opertions.They said that foreign companies should be allowed to import items for the first six to eight months under multi-brand retail trading.The Prime Minister will take a final call on the issue.At present, foreign companies can only invest only up to 51 percent in multi-brand retail, while there is no cap on single-brand retail.In September last year, Union Commernce Minister Nirmala Sitharman had said India was not yet ready to open up multibrand retail to foreign investment. "We haven't reached competition where there will be a level playing field if it (multi-brand retail) were to be opened up," the minister had said.