Latest: Allow FDI in multi-brand retail after 5 years Report

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SIVASIVA

FCA Future CA

4935 Points Joined March 2010

17 Aug, 2010, 07.42PM IST,PTI

Allow FDI in multi-brand retail after 5 years: Report

NEW DELHI: Before allowing FDI in multi- brand retail, the government should give five year's time to the players in the unorganised sector to develop a strategy to compete with foreign firms, a report said.

"...a breathing space of five years till 2015 should be given to the unorganised retail sector so as to enable this crucial sector to re-orient its strategy and be competent to face competition from foreign investment," the report of Birla Institute of Management Technology (BIMTECH) said.

The industry department has taken a tentative step towards opening the multi-brand retail sector by kick starting a debate on the issue.

Besides, major retail players like Carrefour and Walmart several Indian chambers and organisations, including BIMTECH have responded to the Department of Industrial Policy and Promotion's (DIPP) discussion paper.

While the BIMTECH report suggests that FDI in front-end retail should be allowed after 2015, foreign investments could be allowed immediately in the retail infrastructure (back-end) to improve the supply chain.

"If the government allows FDI in back-end retail right now that will strengthen the supply chain by the time multi-brand retail becomes opens, say after five years," BIMTECH's Director H Chaturvedi said.

Due to lack of proper food processing and storage facilities, annual wastage of fruits, vegetables and other agri-products is estimated at Rs one lakh crore.

The BIMTECH report also recommended that the government should set up a separate fund for educating retailers in the unorganised sector about customers service and products display.

While multi-brand retail is forbidden for FDI, the government allows 51 per cent foreign investment in single brand retail and 100 per cent in wholesale trade.

source: https://economictimes.indiatimes.com/news/economy/foreign-trade/Allow-FDI-in-multi-brand-retail-after-5-years-Report/articleshow/6326170.cms

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SIVASIVA

FCA Future CA

4935 Points Joined March 2010

17 Aug, 2010, 03.43PM IST,PTI

Trade gap widens to $13 bn in July as exports drop

NEW DELHI: Trade deficit widened to $12.93 billion in July as exports fell short of target due to lower demand of leather, handicrafts and readymade garments in the US and Europe.

Exports grew only by 13.2 percent in July 2010 year-on-year against 30.4 percent growth recorded in the previous month. Exports from the country in July were $16.24 billion while import was $29.17 billion resulting in a trade deficit of $12.93 billion.

"Trade deficit is much larger than it used to be before. Exports grew only 13.2 percent. This is not a good number," Commerce Secretary Rahul Khullar said Tuesday.

Exports slowed in July because of a sharp drop in the exports of leather, handicrafts, readymade garments, tobacco and rice.

Imports grew by 34.3 percent to $29.17 billion in July as imports of coal and fertilizers almost doubled.

Interestingly, imports of crude oil grew by only four percent during the April to July period this year.

In the first four months of this year, exports increased 30.1 percent to $68.6 billion, while imports surged 33.3 percent to $112.2 billion, resulting in a trade deficit of $43.6 billion.

The government has set an export target of $200 billion in the current fiscal. The July data indicates that the target will be difficult to achieve.

However, Khullar said the government was optimistic and the $200 billion target would be achieved if exports grow by at least 15 percent for the rest of the year