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The Cabinet won’t consider any proposal to allow foreign direct investment (FDI) in multi-brand retail at its meeting on Friday, said trade minister Anand Sharma, responding to speculation that the government was likely to approve such a move.
Sharma also denied that he would be meeting Vayalar Ravi, ministry of micro, small and medium enterprises, to evolve a consensus on the 30% local-sourcing clause for single-brand foreign retailers.
Press Trust of India had reported on Wednesday that Ravi had written to Prime Minister Manmohan Singh seeking the retention of the local-sourcing norm.
“There is no dispute. The local-sourcing clause has to be there; it is important for job creation,” Anand said.
PTI cited Ravi as saying that “If there is any relaxation in this norm, itself, it would lead to a major upsurge in cheap imported goods, which are being made in non-transparent economies where direct and indirect subsidy regimes, coupled with currency controls, ensure unfair exports to third countries.”