Keeping in mind the probable increase in demand for electronics and sports goods, the UPA government has decided to allow 100 per cent foreign direct investment (FDI) in electronics and sports goods retail. The intended proposal will be revived with the department of industrial policy & promotion (DIPP). The previous attempt failed due to disapproval from the Left parties.
As per the proposal, FDI will be allowed in retailing of consumer electricals, electronics, sports goods and accessories, after vetting by the Foreign Investment Promotion Board.
According to sources, “With the Left out of the ruling alliance, the Cabinet is likely to take up the proposal shortly. The proposal was up for Cabinet consideration a fortnight ago, but couldn’t be deliberated upon by ministers owing to paucity of time. Last week, Cabinet did not meet since the prime minister was not in town.”
Ahead of commonwealth games 2010, the government wants to meet the arising demand in sports and electronic goods, by facilitating foreign companies to make direct investment.
The government will take all precautions to not to harm kirana stores. While, currently FDI is not allowed in multi-brand retail, the government allows 51 per cent FDI in single-brand retail.