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Feeling confident enough to open a controversial subject, the Government has opened up a debate on permitting FDI in multi-brand retailing. This has been done through a discussion paper released by the Department of Industrial Planning and Policy (DIPP) on the 6th July. If implemented, the reform would help international retailers such as Walmart, Carrefour and many others who are keen to land on Indian shores. The move will for sure be opposed by the strong small trader lobby and the political opposition. It is likely to be opposed within elements of the UPA as well. The Government has suggested that the reform could be implemented in a calibrated manner. This could include restrictions and limitations to those investing. The paper claims that the benefits include investment in back-end logistics and better prices for the farmer.
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