India: FDI cap in multi-brand retail set to increase
Description
On 25 may 2010, it has been reported that the Commerce and Industry Ministry, Goverenment of India is likely to propose 100% foreign direct investment (FDI) in multi-brand retail. The Department of Industrial Policy and Promotion (DIPP) is currently preparing the background document for this policy. They will also suggest stiff local sourcing requirements and mandatory investments in backward linkages. It is expected that it will be mandatory for big multi-brand foreign retailers to create a back-end cash-and-carry for small shopkeepers, giving them benefit of scale on the sourcing side.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: No
Date of inception:
GTA Evaluation: Green
Source:
FDI in multi-brand retail set to get 100% backing, http://economictimes.indiatimes.com/FDI-in-retail-set-to-get-100-backing...
Department of Industrial Policy and Promotion (DIPP), Commerce and Industry Ministry, Goverenment of India
Government Response:
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