India's First Wine, Food and Hospitality Website, INDIAN WINE ACADEMY, Specialists in Food & Wine Programmes. Food Importers in Ten Cities Across India. Publishers of delWine, India’s First Wine.
Skip Navigation Links
About Us
Indian Market
Wine & Health
Wine Events
Retail News
Contact Us
Skip Navigation Links
Wine Tourism
Book Review
Photo Gallery
Readers' Comments
Video Wall
Media Partners
Ask Wineguyindia
Wine & Food
Wine Guru
Gerry Dawes
Harvest Reports
Mumbai Reports
Advertise With Us
US Report on Indian Market Released
Top Ten Importers List 2015-16
On Facebook
On Twitter
Delhi Wine Club

Posted: Thursday, 26 August 2010 17:24

Govt. May Allow 49% FDI in Retail

The Consumer Affairs Ministry has given the green signal to allow 49 per cent FDI in multi-brand retail and  has written a letter to this effect to the Commerce Ministry, while seeking  to formulate a model law to be first put in place at the State-level to protect mom-and-pop stores from the impact of the ‘Big Boys' of retail.

India currently allows 100 per cent FDI in cash-and-carry operation and 51 per cent in single-brand retailing. Foreign investors are barred from investing in multi-brand retail.

‘Multi-brand retail should be permitted with a cap of 49 per cent… A significant chunk of investments should be spent on back-end infrastructure, besides logistics and agro-processing,” the Consumer Affairs Ministry had said in response to the discussion paper floated by the Department of Industrial Policy and Promotion in June on allowing 100 per cent FDI in multi-brand retail.

A senior government official  has  said the Consumer Affairs Ministry has sought the enactment of the National Shopping Mall Regulation Act to regulate the fiscal and social aspects of the retail sector, besides allowing mom-and-pop stores to become franchises of multi-brand retailers, according to a report in the Hindu Business Line.

“This will help grow not just the business but also in setting up back-end infrastructure which is much needed for the evolution of the retail sector,” the official added.

According to an ICRIER study, commissioned by the Commerce Ministry in 2007, “the retail business, in India, is estimated to grow at 13 per cent each year from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganised retail sector is expected to grow at about 10 per cent a year from $309 billion 2006-07 to $496 billion in 2011-12.”

A growth in this segment of Retail augers well for the wine industry since many of these big ticket retailers can add big wine portfolios resulting in higher volumes. State governments are increasingly allowing the supermarkets and retailers sell wine and beer. Delhi government is the last to fall in this category. Maharashtra and Karnataka already have allowed as have states like Haryana, Punjab etc. A good example of  wine retail is through Indian owned Spencer’s in cities like Gurgaon.


Want to Comment ?
Please enter your comments in the space provided below. If there is a problem, please write directly to Thank you.

Generate a new image

Type letters from the image:

Please note that it may take some time to get your comment published...Editor

Wine In India, Indian Wine, International Wine, Asian Wine Academy, Beer, Champagne, World Wine Academy, World Wine, World Wines, Retail, Hotel


Copyright©indianwineacademy, 2003-2020 |All Rights Reserved
Developed & Designed by Sadilak SoftNet