No decision on FDI in retail yet: Chidambaram

The government has not taken any decision to allow foreign direct investment in the retail sector, finance minister P Chidambaram told the Rajya Sabha today.

Speaking during question hour, he also said that FDI was only permitted for cash and carry, wholesale and single-brand retail stores.

Chidambaram said FDI investments inflows of $13.5 billion during 2006-07 were the highest-ever and if retained earning and a swap deal were to be included, the FDI during the period would be $19 billion.

He said investments of 28-32 per cent of GDP were required for sustaining high GDP growth and the UPA government had achieved an investment ratio of over 33 per cent of GDP during 2005-06.

Chidambaram also said measures would be taken during the current five-year plan to ensure that the target of $320 billion needed for the development of infrastructure sector during the next five years would be met.

These investments would be achieved through a combination of public investment, public-private partnerships and exclusive private investments, wherever feasible.