FDI reforms: 'Realistic framework needed for dollars to flow'

With the government likely to ease foreign direct investment (FDI) rules for several sectors including multi-brand retail soon, it must ensure that any move in this regard should be economically feasible and bring meaningful returns, said Vivek Gupta, Partner at BMR Advisors.Speaking to CNBC-TV18, Gupta said any reform should be comprehensive rather than incremental, which has been the norm so far. He cited the example of retail norms that have been place since 2012, where there has not been much interest in multi-brand retail because it did not prove to be viable. The previous UPA government had allowed up to 51 percent FDI in multi-brand retail."The government needs to come up a realistic framework for dollars to flow," Gupta said.ALSO READ: FDI norms may be eased for multi-brand retail, commodity marketsOn the government's move to do away with the Foreign Investment Promotion Board, Gupta said he was confident that the nodal's body replacement would be a robust structure as the government was keen to encourage investment.He said the focus should be on multi-brand retail, and it would only prove successful if the government allowed entrantsto run like proper supermarkets rather than limiting them to certain items.The government may allow limited sale of beauty and personal care products in global giants' food retail outlets as part of plans to ease rules for multinationals to open stores in the country. Inter-ministerial consultations are currently on for writing the new rules to partially open up the non-food sector to transnational deep-discount retailers. Prime Minister Narendra Modi will take a final view on the matter and a decision is expected after the second part of Parliament's Budget session ends in March.Watch video for more...