Tesco seeks clarification on India's retail FDI policy

Last Updated: Thu, Jan 24, 2013 13:10 hrs

New Delhi, Jan 24 (IANS) British retailer Tesco Thursday sought clarifications from the Indian government on the foreign direct investment (FDI) policy in retail.

Tesco chairman Sir Richard Braodbent met India's Commerce and Industry Minister Anand Sharma in Davos at the World Economic Forum to discuss the possibility opening stores in India.

"Sharma met Tesco chairman Sir Richard Braodbent who sought certain clarifications on conditionalities in the new FDI policy for the retail sector," the commerce and industry ministry said in a statement here.

"Sharma assured that all the foreign investors will be provided hand holding and asked him (Braodbent) to voice his concerns in writing and offered all help if Tesco decides to send a team to Department for Industrial Policy and Promotion for consultation," the statement said.

The Indian government last year in September changed regulations to allow up to 51 percent foreign direct investment in multi-brand retail and raised the limit of overseas investments in single-brand retail to 100 percent.

The government has liberalised the FDI policy in a bid to attract overseas investments.

However, a number of conditions have been imposed regarding FDI in multi-brand retail. These include domestic norms and investment in back-end infrastructure.

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