The long pending issue of opening of multi-brand retail to foreign investment moved one more step, with the top secretaries forwarding 10 recommendations to the commerce and industry ministry yesterday.
The CoS headed by cabinet secretary Ajit Kumar Seth has recommended that 51% FDI could be allowed in the sector, which is dominated by mom and pop stores. The CoS has also suggested that at least 50% of the investment and jobs should go to rural areas.
The other recommendations include, allowing such mega stores to sell nonbranded items and such entities should be allowed only in towns with population of over 10 lakh. India allows 51% FDI in single brand retail and 100% in cash and carry format of the business.