UKIBC seeks review of FDI norms for retail
The UK-India Business Council (UKIBC) has asked the Government of India to review its norms for investment in multi-brand retail to boost FDI in the politically sensitive sector. Currently, India allows investment of up to 51% in the sector by foreign entities. Till date, Tesco is the only UK retail chain to have got approval. UKIBC Group CEO Richard Heald opines that while local sourcing norms are acceptable, requirements of upfront investments in logistics and back-end infrastructure may or may not suit individual retailers. Local traders have stiffly opposed FDI in this sector.