New Delhi: Much hoopla has been created to oppose the Foreign Direct Investment (FDI) in the retail sector, however if a similar tactics is adopted by foreign countries towards India, it is likely to leave several corporate honchos of the country gasping for breath.

Centre puts FDI decision on hold

During the past three years, there has been a constant increase in the investment by Indian corporate houses in the retail and wholesale sector of foreign countries.

In the first eight months of the ongoing fiscal, the industrial houses have invested capital worth USD 62.27 crore in wholesale and retail sectors of foreign countries.

The growing interest of indigenous firms can be gauged with the fact that foreign retail and wholesale sector has become third hottest destination for them to invest. 

The Indian firms had pumped an amount worth USD 105.16 crore in a dozen of countries including US, Britain, Australia, Canada, UAE in 2009-10, while in 2010-11 the fund increased by 80 percent to USD 186.96 crore.

Indian companies’ investment in agriculture and fisheries increased to USD 120 crore in the last financial year. They are taking interest in the retail financial sector too.

The Reserve Bank of India in May has liberalized its policy related to investment in foreign countries. As per the new policy, Indian companies can invest up to 400 percent of their net worth in overseas ventures.

JPN/Bureau