FDI In The Retail Sector To Create Over 10 Mn Jobs In 3 Years: Government

The government said on Friday marks the opening of some retail foreign players to create more than 10 million jobs over the next three, brushing aside all criticism is also the key UPA ally Trinamool Congress.

"My initial estimates are that it will create more than 4 million jobs in the country and the logistics of about 5-6 million jobs in three years," Trade and Industry, Anand Sharma, minister tells reporters in New Delhi.

Guidelines for the decision to allow 51 percent FDI in multi-brand retail is the next week, the minister said, adding: "I look forward to billions of dollars of FDI from the field."

He also said that the measures taken by the government will help Indian farmers "immensely", and also help create jobs in sectors such as agriculture and food industry and set the IDE to build the infrastructure.

However, he noted that all proposals for the sale of several brands to be approved by the Council for the Promotion of Foreign Investments (FIPB) and retailers must be licensed by the respective state governments to establish stores.

The decision was criticized by the entire opposition, who had also joined the UPA ally Trinamool Congress on the issue.

The government's decision could pave the way for the retail global giants like Wal-Mart, Tesco and Carrefour to settle in the country.

Mr. Sharma said that the government is a privilege to purchase agricultural products.

Citing examples of countries such as Indonesia, Thailand and Malaysia, where 100 percent FDI is allowed in the area, he said that the movement would not affect marginal and small retailers in the country.

The government also increased the cap for FDI in single brand retail sales 100 percent from the current 51 percent.

"Simple distribution of branded products that cover only products which are branded during manufacturing," he said, adding that the foreign investor must be the owner of the trademark.

"With regard to proposals involving FDI beyond 51 percent, 30 percent would be SME supply / village and cottage industries craftsmen and artists," said Sharma.

This condition would benefit SMEs in India, particularly in sectors such as textiles, gems and jewelry, leather and jute, he said.