~:Organised retailers in demand after FM's comment:~
Shares of seven organised retailers rose by 0.70% to 4.67% at 13:50 IST on BSE after Finance Minister Pranab Mukherjee said foreign direct investment in multi-brand retail sector is still a government priority and has not been shelved.
V2 Retail (up 4.67%), Provogue (India) (up 4.43%), Pantaloon Retail India (up 2.50%), Koutons Retail (India) (up 1.92%), Store One Retail (up 0.94%), Trent (up 0.84%) and Shoppers Stop (up 0.70%), edged higher.
The BSE Sensex was down 16.40 points or 0.10% to 15,796.96.
Government's plan to give foreign supermarkets access to domestic retail industry is still a priority and has not been shelved, finance minister Pranab Mukherjee said today (23 December 2011).
Mukherjee said the delayed policy was very much on the government's mind and officials were now working for a consensus on foreign direct investment (FDI) plans in supermarkets.
Earlier, the Union Cabinet on 24 November 2011, had cleared a proposal to allow 51% FDI in multi-brand retail and increase in FDI in single brand retail to 100% from current 51%, paving way for global chains like WalMart, Carrefour and Tesco to open mega stores in Indian cities.
However, facing a harsh political reaction that paralysed the Indian Parliament, the governing Congress Party on 7 December 2011, temporarily suspended FDI plans in multi-brand retail.
Late last month, Prime Minister Manmohan Singh strongly defended the Cabinet decision to allow FDI in retail sector and said he was confident that FDI in India's retail sector would benefit all as it would bring modern technology to the country, improve rural infrastructure, reduce wastage of agricultural produce, enable farmers to get better prices for their crops and consumers will get commodities of daily use at reduced prices.
The Confederation of Indian Industry (CII) backed the government, saying that opening up the retail sector will usher in substantial investments into back-end infrastructure that will help cut down wastage of farm produce and offer more choices to consumers.
The Cabinet's decision on FDI united the Left and the Bharatiya Janata Party (BJP) against the government, and led to strong demands of a reversal even from allies like Mamata Banerjee, who are key to the survival of the United Progressive Alliance (UPA). The principal opposition party, BJP, believes 51% FDI in multi-brand retail will affect the services and manufacturing sectors of the Indian economy and lead to a massive loss of jobs.
BJP has said that the States ruled by it will not permit multi-brand global players to set up shop. While the Trinamool Congress is against FDI in retail, Uttar Pradesh Chief Minister Mayawati has alleged that the government's decision was aimed at benefitting the foreign friends of Congress general secretary Rahul Gandhi. Tamil Nadu Chief Minister, Ms Jayalalithaa issued a statement saying her government will not allow multi-brand global players, permitted under the new policy, to set up hyper-markets in Tamil Nadu.
V2 Retail (up 4.67%), Provogue (India) (up 4.43%), Pantaloon Retail India (up 2.50%), Koutons Retail (India) (up 1.92%), Store One Retail (up 0.94%), Trent (up 0.84%) and Shoppers Stop (up 0.70%), edged higher.
The BSE Sensex was down 16.40 points or 0.10% to 15,796.96.
Government's plan to give foreign supermarkets access to domestic retail industry is still a priority and has not been shelved, finance minister Pranab Mukherjee said today (23 December 2011).
Mukherjee said the delayed policy was very much on the government's mind and officials were now working for a consensus on foreign direct investment (FDI) plans in supermarkets.
Earlier, the Union Cabinet on 24 November 2011, had cleared a proposal to allow 51% FDI in multi-brand retail and increase in FDI in single brand retail to 100% from current 51%, paving way for global chains like WalMart, Carrefour and Tesco to open mega stores in Indian cities.
However, facing a harsh political reaction that paralysed the Indian Parliament, the governing Congress Party on 7 December 2011, temporarily suspended FDI plans in multi-brand retail.
Late last month, Prime Minister Manmohan Singh strongly defended the Cabinet decision to allow FDI in retail sector and said he was confident that FDI in India's retail sector would benefit all as it would bring modern technology to the country, improve rural infrastructure, reduce wastage of agricultural produce, enable farmers to get better prices for their crops and consumers will get commodities of daily use at reduced prices.
The Confederation of Indian Industry (CII) backed the government, saying that opening up the retail sector will usher in substantial investments into back-end infrastructure that will help cut down wastage of farm produce and offer more choices to consumers.
The Cabinet's decision on FDI united the Left and the Bharatiya Janata Party (BJP) against the government, and led to strong demands of a reversal even from allies like Mamata Banerjee, who are key to the survival of the United Progressive Alliance (UPA). The principal opposition party, BJP, believes 51% FDI in multi-brand retail will affect the services and manufacturing sectors of the Indian economy and lead to a massive loss of jobs.
BJP has said that the States ruled by it will not permit multi-brand global players to set up shop. While the Trinamool Congress is against FDI in retail, Uttar Pradesh Chief Minister Mayawati has alleged that the government's decision was aimed at benefitting the foreign friends of Congress general secretary Rahul Gandhi. Tamil Nadu Chief Minister, Ms Jayalalithaa issued a statement saying her government will not allow multi-brand global players, permitted under the new policy, to set up hyper-markets in Tamil Nadu.
.jpeg)
Comments