Considering raising FDI cap in single-brand retail: Sharma

New Delhi: Government is "seriously" considering to raise the 51 percent cap in foreign direct investment (FDI) in single-brand retail business, Commerce and Industry Minister Anand Sharma said today.

"We are seriously considering to raise the bar further- that means to allow increased FDI," he said at a CII event on Indian luxury market here.

At present, the government allows 51 percent FDI in single-brand retail businesses run by global chains like Adidas, Nike, Louis Vuitton, Hermes and Gucci.

However, he did not elaborate on how much percentage it needs to be raised. "How much it is, only when we take the decision you will get to know."

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He promised that the government would create an enabling environment for investors. "You bring in FDI or partnership, surely it will be a game-changer."

Sharma said he would ask the Finance Ministry to lower tariff barriers as well. "Its the domain of the Finance Ministry. I will be meeting some (officials) of them today and we will see what we can do."

On India-EU free trade agreement, Sharma said the chief negotiators are engaged. "This has taken us long. I have spoken to EU Trade Commissioner. We must bring it down to a closure...Once the FTA is signed, it will open a pathway for greater cooperation among the nations."

India is in talks with the EU, its biggest trading partner, since June 2007 for liberalising trade in goods, services and investment through a Broad-based Trade and Investment Agreement (BTIA). Already 13 rounds of talks have taken place.

Dismissing Crisil's lower GDP forecast of 7.6 percent for 2011-12, he said: "India will definitely have 8 percent growth because of its consumption patterns and higher saving rates."

Crisil has scaled down the growth projections for India in view of the deteriorating global economic scenario and "grim investment climate in India on account of the policy environment".

PTI