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Emerging Investment Opportunities in India: The Multi-Brand Retail Segment

A consensus has emerged in the government to permit foreign direct investment (FDI) in multi-brand retailing.

The Ministries of agriculture and food processing and the Planning Commission have suggested FDI up to 100 per cent in this sector, where other ministries have suggested smaller caps and sought more suggestions from industry.

The inter-ministerial group of inflation headed by Kaushik Basu, who is the chief economic advisor in the finance ministry, has recommended that FDI in multi-brand retail should be permitted, as it could be one of the key steps to help reduce rising prices and cut the margin between farms and retail prices.

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