States can decide on FDI in retail

New Delhi: Chief Economic Advisor to the finance ministry Arvind Subramanian on Tuesday favoured retai-ning FDI in multibrand retail as it will help the country to create  infrastructure for agriculture.“Finance minister Arun Jaitley makes a distinction between the party’s position and the government’s position. The government’s position is that whatever we have, we are going to stick to it,” Mr Subramanian told a news channel.

He said that as per the stated policy, if states want to use FDI in multi-brand retail, they will be allowed to do it. “In order to create a common market, you have to create an infrastructure so that private market can flourish in agriculture and that require a couple of things,” he said.For this, he said the government need to create infrastructure such land for all these markets and investment.
“Can we get the private sector invest in this infrastructure? And if that is necessary, we should have domestic private sector doing it and may be foreign private doing it,” added  Mr Subramanian.

The controversy over FDI in multibrand retail kicked off after DIPP’s press note continued the UPA government’s policy of allowing foreign investment in multibrand retail. The finance minister has maintained that the BJP is opposed to FDI in multibrand retail. “Our political stand is very clear that we are not in its (FDI in multi-brand retail) favour. But right now, DIPP has maintained its old policy. As far as the political stance of the BJP is concerned, every body knows we have not been in favour of it. Now it is a question about what you do with the past that is the only question that remains,” Mr Jaitley had said on the Centre’s stance on FDI in multi-brand retail.