The evolving FDI realities

“Out of the question.” That was Commerce and Industry Minister Piyush Goyal's reply to Business Standard in an interview a few days ago when asked about the scope for foreign direct investment (FDI) liberalisation in multi-brand retail.

- NIVEDITA MOOKERJI

This remark coincides with India celebrating 10 years of its signature scheme: Make in India.

It’s a different matter that FDI in multi-brand retail is already allowed, but has remained only on paper the last 10 years. The Congress-led United Progressive Alliance government announced a multi-brand retail policy in 2012, allowing up to 51 per cent FDI. However, while international retail companies were still strategising their India entry, the Bharatiya Janata Party-led National Democratic Alliance government came to power in 2014, altering the retail landscape for years to come. Since then, the multi-brand retail policy has been kept in abeyance.

This government’s opposition to FDI in multi-brand retail is no secret, nor is the reason behind it. But, are the mom-and-pop stores and local traders, who are considered a critical vote bank for the BJP, a happy lot without FDI in multi-brand being activated? Or, have the neighbourhood corner stores actually gained from the government’s stand on FDI in multi-brand retail?