The Cabinet is also likely to take up the new Companies Bill after differences over market regulator Securities and Exchange Board of India’s jurisdictions in case of regulatory overlaps have been ironed out between the Finance and Corporate Affairs Ministries
At present, India allows 100 per cent FDI in cash-and-carry wholesale trade that is business-to-business. It permits 51 per cent in single-brand retail such as Louis Vuitton, Jimmy Choo or Fendi. However, FDI is not allowed in multibrand retailing like Walmart, Carrefour and Tesco. The Cabinet will tomorrow be taking for approval both the proposals of increasing the FDI limit in single-brand retail and permitting 51 per cent in multi-brand retail together, a senior official from the Ministry of Commerce and Industry told Business Standard.
Last week, the Department of Industrial Policy and Promotion (DIPP) had sent the final note to the Cabinet, suggesting both the measures after thorough inter-ministerial consultations.
