The government is all set to clear a proposal to allow 51 per cent FDI in multi-brand retail. The issue is high on the agenda of the Union Cabinet at its meeting here on Thursday. If this is cleared, and subsequently secures parliamentary
approval, mega-retail bands like Wal-Mart, Tesco and Carrefour will get a chance to open outlets in India provided they make a minimum investment of $100 million in this sector.
Top government sources said Thursday’s Cabinet meeting is likely to “review the existing FDI policy” and as part of this might “also allow 100 per cent FDI in single-brand retail”. Sources said the current FDI policy on setting up research institutes in the country would also be reviewed. “There is now a mandatory provision to source 30 per cent of research infrastructure from the domestic market. There is a proposal before the Cabinet to do away with this provisions,” a source said.