<div>While India Inc expressed strong displeasure over the Delhi government's decision to withdraw approval to FDI in multi-brand retail on Monday, 13 January), the benchmark Sensex on 14 January fell by nearly 24 points in early trade as funds and retail investors booked profits after two sessions of gains.<br /><br />Corporate India said the AAP move was unfortunate and was likely to hinder foreign investments flowing into the country.<br /><br />"It is unfortunate that the Delhi government has chosen not to allow FDI in multi-brand retail in Delhi. This will discourage International retailers planning to enter India," Chairman of CII National Retail Committee J Suresh told PTI.<br /><br />In a significant decision, Aam Aadmi Party government had withdrawn the approval given by the previous Sheila Dikshit dispensation to foreign direct investment (FDI) in multi-brand retail in Delhi.<br /><br />Delhi, till recently under Congress rule, is the first government to have withdrawn a nod to retail FDI after backing it initially. Rajasthan, now gone to the Bharatiya Janata Party (BJP) from the Congress, could follow AAP in asking the department of industrial policy and Promotion (DIPP) to remove it from the list of states which supported FDI in multi-brand. If the states exit from the list, only 10 states/Union Territories would back foreign investment in retail.<br /><br />But there's some hope in the case of Delhi. While AAP has delivered on its poll promise by taking the anti-retail FDI stand, a senior government official indicated that Delhi does not have statehood and its "autonomy is restricted", unlike states which have opposed FDI in multi-brand retail. Inter-ministerial consultations were possible to discuss whether the Centre would have a final view on the issue, said a source. "In that sense, Delhi is a test case."<br /><br /><strong>Industry Bodies Livid</strong><br />Terming the Delhi government's decision as anti-investment and one that sends a wrong signal to foreign investors, industry body Assocham said: "If one party reverses the decision of its rival dispensation upon change of guards, the policy and political risks for global investors would definitely increase in India, scaring them away".<br /><br />Last year, the central government permitted 51 per cent FDI in the multi-brand retail trading and left its implementation on the states.<br /><br />"This direct negation without demonstrating a search for a viable alternative would hamper investment sentiment.<br /><br />Consumers would have benefited from choices of products at competitive prices. It has been proven time and again that both large multi-brand retail stores and small kirana stores coexist peacefully," Ficci President Sidharth Birla said.<br /><br />As many as 12 states, mostly Congress-led, including Delhi had agreed to allow global retailers to open super market chains. The other states include Maharashtra, Karnataka and Andhra Pradesh.<br /><br />"The Delhi government's decision is bound to impact the overall FDI scenario not just in Delhi but also associated states like Haryana, Rajasthan and Punjab because Delhi is the hub for northern states," PHD Chamber of Commerce President Sharad Jaipuria said.<br /><br />"According to our assessment, overall retail sector in the Delhi-NCR region has potential to attract FDI worth $50 billion in the next 5-6 years if supported with conducive policies. But due to this decision, it won't materialise," he added.<br /><br />Delhi has become the first state to withdraw permission for FDI in retail sector.<br /><br />The Aam Aadmi Party (AAP) in the party manifesto had expressed its opposition to the policy of FDI in multi-brand retail.<br /><br />Kejriwal said his government had to take a decision between better choices for the consumers and unemployment.<br /><br />The Chief Minister felt the entire retail sector has not been given a "conducive and honest environment" and his administration would do everything possible to help the traders.<br /><br />"Today, if you want to start the business or if you want to do business, you have to face many bottlenecks because of huge corruption. In the next few days, I am going to have meetings with the traders and industrialists to ask them about steps required to help them," he said.<br /><br />Kejriwal said trade and business have been generating wealth and creating employment opportunities and his government's priorities would be to help the entrepreneurs and trading community.<br /><br />"We are committed to creating an honest environment to do business. Ever since the launch of anti-corruption helpline, I have been getting the feedback that officials are on back foot and afraid of asking for bribe," said Kejriwal.<br /><br />(Agencies)</div>
