27 April 2010 | By: Mohamed Hairul Borhan

India’s Department of Industrial Policy and Promotion (DIPP) will unveil six discussion papers in mid-May on liberalising foreign direct investment (FDI) in sectors ranging from defence to retail.

Rajinder Pal Singh, Secretary of DIPP, said at the sidelines of a Federation of Indian Chambers of Commerce & Industry event that the six papers will cover all the issues that might be of concern to retailers. These include discussions on multi-brand retail.

Transnational companies such as WalMart, Carrefour and industry chambers are eyeing the lucrative Indian retail market and have pitched for the multi-brand segment to be opened up. However, this has met with some resistance from a Parliamentary panel which has objected to corporates entering the sector.

Currently, the government allows 51 per cent FDI in single-brand retail and 100 per cent in cash-and-carry (wholesale) sectors. The Indian government also allows 100 per cent FDI in drugs and pharmaceuticals through the automatic route.

On pharmaceuticals, Mr Singh said the department was not averse to FDI, but is demanding review of the policy.

"They (Department of Pharmaceutical) are not opposing (FDI). They are only saying that FDI (policy) should be reviewed and it should not result in Indian companies being purchased by outsiders," he said.

FDI inflows in the first 10 months of 2009-10 amounted to US$22.9 billion (S$31.3 billion*).

*Exchange rate correct as at 27 April 2010