NEW DELHI: India Inc on Jan 13 expressed strong displeasure over the Delhi government's decision to withdraw approval to FDI in multibrand retail, saying the move was likely to hinder foreign investments flowing into the country. "It is unfortunate that the Delhi government has chosen not to allow FDI in multibrand retail in Delhi. This will discourage international retailers planning to enter India," chairman of CII National Retail Committee J Suresh said. In a significant decision on Jan 13, Aam Aadmi Party government withdrew the approval given by the previous Sheila Dikshit dispensation to foreign direct investment (FDI) in multibrand retail in Delhi.
Terming the Delhi government's decision as anti-investment and one that sends a wrong signal to foreign investors, industry body Assocham said: "If one party reverses the decision of its rival dispensation upon change of guards, the policy and political risks for global investors would definitely increase in India, scaring them away".
Last year, the central government permitted 51 per cent FDI in the multibrand retail trading and left its implementation on the states.