November 25th, 2011
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FDI will help farmers & create jobs: Anand Sharma

anand sharmaNew Delhi: Commerce Minister, Anand Sharma stated that FDI in retail sector would help farmers and create more job opportunities. According to him the government’s new policy would create 10 million jobs in three years, while not affecting smaller, domestic retailers.

Foreign companies investing more than 51 per cent in single-brand retail stores must source at least a third of their products from small domestic industries or village craftsmen, a government statement quoting the trade minister said. Under the policy the government will have the first right to procure farm products in its new policy allowing foreign supermarkets in India, the trade minister said.

He also said fresh agricultural produce may be sold unbranded in foreign supermarket policy. “FDI policy has been evolved after consulting all stakeholders”, he added.

51% stake in the multi-brand retail sector will pave the way for global groups such as Walmart, Carrefour and Tesco to open supermarkets in India. It also allowed 100% FDI in single-brand retail, a decision that will encourage companies such as Sweden’s homeware firm Ikea and clothing retailers Gap and H&M to set up shop. Until now, foreign firms were allowed 51% in single-brand retail, while being allowed to own 100% of back-end cash-and-carry operations that serve wholesalers.


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