Congress on Wednesday hailed as a "constructive step" the government's move to usher in 100% FDI in single-brand retail.
Party spokesman Manish Tewari told reporters that Foreign Direct Investment was beneficial for the country notwithstanding the fact that there was no political consensus to open multi-brand retail to FDI.
His remarks came when asked about the government's move notifying 100% FDI in single-brand retail, paving the way for global chains like Adidas, Louis Vuitton and Gucci to have full ownership of their India operations.
The decision to increase FDI in single-brand retail was taken by the Cabinet on November 24 along with opening the gates for overseas investment in multi-brand retail.
However, the government was forced to put on hold FDI in multi-brand retail by several political parties, including UPA ally Trinamool Congress.
At present, for single-brand retailers, 51% FDI is permitted. Removal of investment cap would help global fashion brands especially from Italy and France to strengthen their interest in the growing Indian market.
Many big names have already set up their operations in the country by partnering with Indian firms. The new policy would allow them to buy out the domestic partners.
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