Delhi becomes first state to withdraw FDI in Multibrand Retail
The Aam Aadmi Party-led government has withdrawn the Foreign Direct Investment (FDI) in multi-brand retail in Delhi. The government formally wrote to the Department of Industrial Policy and Promotion (DIPP) to disapprove the setting up of FDI-funded multi-brand retail stores in the State. With this withdrawal, the national capital territory has become the first State Government to withdraw permission for FDI-funded retail stores.
The decision is bound to impact the overall FDI scenario not just in Delhi but also in associated states viz. Haryana, Rajasthan , Punjab, etc, because Delhi is the hub for northern states.
Why such a decision by Delhi Govt.?
Delhi CM Arvind Kejriwal is of the view that though the FDI provides a wide range of choice to consumers but it also creates unemployment as was seen in many countries. That’s why, the foreign participation into the supermarkets sector would worsen the city’s unemployment problem and therefore the government is opposed to it. The manifesto of Aam Aadmi Party (AAP) party too opposed the policy of FDI in multi-brand retail.
Note: The previous Delhi Government led by the Congress had approved FDI in multi-brand retail. The states that allow FDI funded stores (mostly Congress-led) viz. Himachal Pradesh, Andhra Pradesh, Maharashtra, Haryana, Rajasthan, Manipur, Karnataka, etc.