The UPA government had allowed FDI upto 51% in multi-brand retail. BJP government promised in their manifesto to not allow FDI in multi brand retail sector. Three years hence, instead of scrapping the existing policy, government has continued with it, which is contrary to their stated promise. In the 2016-17 Budget, the government allowed 100% FDI in multi brand retail of domestic food products. The government’s own press release dated 15th March 2016 states the following:
“Inaugurating the International Food and Hospitality Fair 2016, being held at Pragati Maidan, New Delhi, the Union Food Processing Industries Minister said that the Budget decision to allow 100% FDI in multi-brand retail for food products produced and processed in India will play a catalytic role in leapfrogging Indian economy. She underlined that the decision pertains to FDI in 100% swadeshi and home-grown food.”
Government’s own press statement says that they have allowed FDI in multi-brand retail (food products) and the fact that the government has continued with erstwhile policy of 51% FDI multi-brand retail. This is further compounded by the fact that the government has expressed no intention to roll back 51% FDI.