The Enforcement Directorate, which probed the alleged contravention of foreign exchange laws by Walmart in its investments in domestic supermarket chain Bharti Enterprises, has found no violation of FDI guidelines by the U.S. multinational retail giant.
Foreign retailers have been keen to enter India's $500 billion retail market since the country allowed overseas investment in its supermarket sector in September 2012 but ambiguity around entry rules has kept them away.
Hailing government's announcement to relax investment norms in multi-brand retail and raising FDI caps in several sectors, India Inc today said reforms were "much-needed" and will boost the confidence of foreign investors which will help in reviving the economy.
India, which threw open its supermarket sector to foreign retailers in September 2012, has not yet received a single application due to ambiguity around existing entry rules.<br /><br />
Congress today ruled out any "change" in the FDI policy to suit any particular company saying if Walmart goes, others will come.
Hong-Kong entrepreneur Ramesh Tainwala spent 18 months operating branded clothing retail stores in India before deciding it was impossible to succeed without paying bribes.
The court said the impugned policy allowing FDI in multi-brand retail did not suffer from any vires, and there was no merit in the challenge to it.
Walmart continued to lobby with the American lawmakers over Indian retail FDI rules during the first quarter of 2013, even as a probe is underway into the global retail giant's US lobbying activities for facilitating its India entry.
The Enforcement Directorate is probing alleged violation of foreign exchange regulations by certain firms engaged in multi-brand retail.
Government today said 2012 has been a bad year for FDI due to global economic slowdown and steps were being taken to increase its inflow.
The global financial uncertainties forced the government in 2012 to finally show animal spirit in liberalising FDI policy amidst objections from Opposition parties with as many as seven sectors being further opened up during the period.
The government is likely to clear Ikea's proposal to open cafeterias at its proposed mega retail outlets when the Foreign Investment Promotion Board (FIPB) reviews the Swedish furniture major's request today.
The retail sector, where the government permitted foreign direct investment in multi-brand, courted controversies during the year with several opposition parties making it a political issue in Parliament.
Stating the government is reaching the limits on providing fiscal or monetary stimulus, Chief Economic Adviser Raghuram Rajan today said the need of the hour was to improve investor confidence
Bowing to opposition pressure, the government today announced a time-bound inquiry by a retired judge into reports of lobbying by retail giant Wal-Mart to gain entry into India.
The Wal-Mart lobbying issue was today raised in the Supreme Court which said it cannot give an early hearing on the issue.
Withdrawal of support to government by an 'obstinate coalition partner' and flurry of reforms have improved India's growth prospects in 2013, said global rating agency Moody's today.
Bharti Walmart today denied allegations that it spent money in India to gain access to the market.
The FDI hurdle is over, but the promotions quota is likely to be another flash point for the government. Tracking live updates.
Glitches in the automatic vote recording system of the Rajya Sabha marked the crucial vote on the motion against FDI in multi-brand retail which the government won.