Foreign money to give retail investments a boost in new year
For a major part of 2012, the country was embroiled in clashes regarding FDI in retail. While the ruling UPA was intent on passing it, the Opposition BJP, alongwith the Confederation of All India Traders was opposed, arguing that it will hurt farmers and kiranas across the country. But the UPA 2 managed to pass the bill in Parliament.
Along with multi-brand FDI, the government also raised the FDI limit in single-brand retail from 51% to 100%. It gave clearance to Swedish furniture company Ikea, British footwear retailer Pavers England, US-based clothing company Brooke Brothers, among others, to set up shops here. In multi-brand retail, things are expected to be slower than FDI in single-brand retail, which has more takers. With lower investment to set up single-brand stores, companies are more eager to enter the burgeoning
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