Govt to allow FDI in retail gradually

Kolkata: The government would further open up the retail sector for foreign direct investment in phases, a top official said today.

"FDI in retail would be gradual and calibrated," Ajay Dua, Secretary in the Department of Industrial Policy and Promotion said at a seminar here.

Dua said the government was fully aware of the concerns of the traditional shopkeepers of the country. The government was not yet ready to assess the impact, he said, adding the issue was now between unorganised and organised players.

He said the government had received applications from three overseas firms for single brand retailing in India. The application of Nike had been cleared and that of LVMH and Lladro were pending with the government.

Kishore Biyani, head of Future Group, said that retailers were targeting the Tier II cities of the country.

Biyani said 97 per cent of Indian retail scenario was unorganised and added it was challenge for retailers to tap the mass market.