(a) whether the Government have given permission of
marketing by Multi National Companies to trade beyond the
two years without setting up the industry;
(b) if so, the reasons for the same; and
(c) the likely effect of this decision on domestic trade?
Minister of State in the Ministry of Fiance (Shri Anandrao V. Adsul)
(a),(b) & (c) : As per the extant policy, FDI upto 100% is
permitted for specified activities such as exports; bulk
imports with ex-port/ex-bonded warehouse sales; cash and
carry wholesale trading activity: project imports; provision
of after sales services, trading of hi-tech medical and
diagnostic items, domestic sourcing of products for exports
etc. Since FDI in retail trading is not permitted, it is
not likely to affect domestic retail trade.