A day after the Modi government’s U-turn on allowing FDI in retail, the Arvind Kejriwal- led Aam Aadmi Party government on Wednesday said it will not allow entry of foreign direct investment in the capital’s retail sector, saying that it will be detrimental to the interests of traders in the city.
The BJP-led central government has retained the previous UPA regime’s decision allowing foreign retailers to open multi-brand stores with 51 per cent ownership, a consolidated FDI policy document released on Tuesday shows. Multi-brand retail was opened up for foreign direct investment, with a 51 <g data-gr-id="37">per cent</g> cap, in September 2012, when the Congress-led UPA government was in power. The documents include changes in the foreign direct investment cap in defence and insurance, where the limit has been hiked to 49 per cent from 26 per cent earlier.
Speaking to reporters at Delhi Secretariat here, Deputy Chief Minister Manish Sisodia said, “We will not allow entry of FDI in <g data-gr-id="36">retail</g> sector in the national capital.”
A senior official said that the stand of the Delhi government, which was communicated to the Department of Industrial Policy and Promotion (DIPP) of the Union Commerce and Industry Ministry, on January 14, 2014, remains unchanged.
In an official statement, the Delhi government said that it is of the view that the national capital at this juncture is not ready to disturb the character of its retail trade.
“Entry of FDI in the retail sector will be detrimental to the interests of traders and will lead to unemployment,” the government said in its official statement.
The city government also said that Chief Minister Arvind Kejriwal’s January 2014 decision to withdraw the approval granted by the previous Sheila Dikshit-led state government remains unchanged.
“The Delhi government will reiterate its stand to the central government to remove all ambiguity on the issue, which may arise due to the fresh policy document of the Centre.
“The Delhi government does not have blind opposition to the FDI, but it is of the firm view that the national capital does not require its entry in the retail sector at this juncture,” the statement said.
Multi-brand retail was opened up for foreign direct investment, with a 51 <g data-gr-id="67">per cent</g> cap, in September 2012, when the Congress-led UPA government was in power.