New panel for FDI |
The government of India has set up a committee to look at easing the policy regime for e-commerce players, including the rules for foreign direct investment. The Prime Minister`s Office has set up a panel headed by NITI Aayog chief executive Amitabh Kant with representatives from other ministries as well as states such as Karnataka, Maharashtra and Punjab. The panel has been asked to submit a report within 60 days. Allowing foreign players in the retail arena has been a contentious issue for long in view of a vocal traders` lobby opposing the entry of large companies. The powerful lobby has argued that global players with deep pockets would wipe out mom-and-pop kirana shops, rendering thousands jobless. This group has also found support from some large domestic players, who have sought to block the entry of global rivals. The Modi government has opened several windows for overseas players to enter the Indian market. For instance, it created a special dispensation for companies such as Apple to open their own retail outlets. Similarly, 100% FDI has been allowed in food retail, provided locally-produced or manufactured products are sold in these stores.
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