Karnataka has joined 11 other states and Union territories that have agreed to allow foreign direct investment in multi-brand retail.
The BJP government had ruled out implementation of FDI in multi-brand retail. The Congress reversed this stance after assuming office in Karnataka.
Big business welcomed the Karnataka government’s decision to allow foreign multi-brand retail to operate in the state, but small business expressed their wariness and indicated they may protest the move.
Any which way, nobody expects a rush of foreign retail into the state. The Central government is yet to receive a single application from multi-brand retailers to establish operations in India, thanks partly to the stringent requirements that it has put on them, and partly to the absence of clarity on certain requirements. The Bangalore Chamber of Industry and Commerce (BCIC), whose members are mostly big corporates, has welcomed the state government’s decision, terming it as a ‘step in the right direction’.
The Federation of Karnataka Chambers of Commerce & Industry (FKCCI), a local industry body that represents small and medium industries, has so far opposed FDI in retail.
One of the organizations that has been most vociferously opposed to foreign retailers has been the Bangalore Wholesale, Food Grain, and Pulses Merchants Association. Its members mostly operate out of the APMC yards.
The BJP government had ruled out implementation of FDI in multi-brand retail. The Congress reversed this stance after assuming office in Karnataka.
Big business welcomed the Karnataka government’s decision to allow foreign multi-brand retail to operate in the state, but small business expressed their wariness and indicated they may protest the move.
Any which way, nobody expects a rush of foreign retail into the state. The Central government is yet to receive a single application from multi-brand retailers to establish operations in India, thanks partly to the stringent requirements that it has put on them, and partly to the absence of clarity on certain requirements. The Bangalore Chamber of Industry and Commerce (BCIC), whose members are mostly big corporates, has welcomed the state government’s decision, terming it as a ‘step in the right direction’.
The Federation of Karnataka Chambers of Commerce & Industry (FKCCI), a local industry body that represents small and medium industries, has so far opposed FDI in retail.
One of the organizations that has been most vociferously opposed to foreign retailers has been the Bangalore Wholesale, Food Grain, and Pulses Merchants Association. Its members mostly operate out of the APMC yards.
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