The government has retained the previous UPA regime’s decision allowing foreign retailers to open multi-brand stores with 51 per cent ownership, in its consolidated FDI or foreign direct investment policy released on Tuesday, notwithstanding the political slugfest over the issue.
The latest edition of the annual FDI document also incorporates all policy changes effected over the past one year, including by the Narendra Modi government in sectors like defence, insurance and railways.
Multi-brand retail was opened up for foreign direct investment with a 51 per cent cap in September 2012, when the Congress-led UPA government was in power.
The BJP-led NDA government, which came to power in May last year, has not made any changes in this policy. However, the BJP had opposed foreign investment in multi-brand retail sector in its election manifesto last year.
The 119-page new compendium, which came into effect on Tuesday, mentions all existing FDI policy decisions as also the changes made over the past one year. These include changes in the foreign direct investment cap in defence and insurance sectors, where limits have been hiked to 49 per cent from 26 per cent earlier.