AAP says no to FDI in multi-brand retail in Delhi

Tags: News
Reversing the earlier policy, the Aam Aadmi Party-led Delhi government has written to the Centre that it will not allow multi-national companies to set up multi-brand retail stores in the state.

In a letter to the Department of Industrial Policy and Promotion (DIPP), the newly-formed state government has asked the Centre to remove Delhi from the list of states which have conveyed their agreement to the policy of FDI in multi-brand retail trading.

"The DIPP has received the letter in this regard from the Delhi government and is looking into it," an official said.

Former state Chief Minister Sheila Dikshit had agreed to implement the policy in the national capital.

Last year, the central government permitted 51 per cent FDI in the multi-brand retail trading and left its implementation on the states.

Rajasthan, which is now being led by the BJP, is also expected to take a view on the policy on which the earlier government had given its consent.

"The DIPP is keeping its fingers crossed with regard to Rajasthan as the BJP had been opposing the policy strongly," the official added.

As many as 12 states, mostly Congress-led, including Delhi had agreed to allow global retailers to open super market chains. The other states include Maharashtra, Karnataka and Andhra Pradesh.

Delhi has become the first state to withdraw permission for FDI in retail sector.

The Aam Aadmi Party (AAP) in the party manifesto had expressed its opposition to the policy of FDI in multi-brand retail.

"The Walmart experience shows that farmers in the US were not benefited, but deprived besides being a very bad employer," Arvind Kejriwal, party's founder and now Delhi Chief Minister, had said earlier.

On the national level, the FDI in multi-brand retail had not evoked the expected response from the global retailers. Till now only one proposal of UK-based Tesco has been cleared by the central government.

EDITORIAL OF THE DAY

  • Electricity generators sit on hundreds of gigawatts waiting for buyers

    Be it a Lok Sabha, Rajya Sabha or a state legislature poll, power — as in electricity — remains a major issue on which elections are won or lost.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Arun Kumar Jain

A complex challenge for our PSUs

Till the mid-1990s, the central government and its companies were ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Dharmendra Khandal

The one in which a blue whale was washed ashore

Quite unexpectedly, a gigantic blue whale was washed ashore at ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture