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ECONOMY 26 Mar, 2014 17: 49 IST
There wi l l be no qui ck move to al l ow Wal -Mart Stores Inc. or Tesco to enter
so-cal l ed 'mul ti -brand' retai l
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he Bharatiya J anata Party (BJ P) would welcome more foreign direct
investment in defence, if elected, but would delay opening up the
country's market of more than 1.2 billion people to international retail
chains like Wal-Mart.
The nationalist Bharatiya J anata Party (BJ P), which surveys show is on course to
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However, the BJ P would propose raising a cap on foreign ownership of Indian defence industry enterprises to 49 percent
from 26 percent now.
Although India spends only a third as much as China on defence, it is the world's largest market for arms exports -
reflecting a failure of past governments to turn around the state-dominated domestic defence industry.
The legacy of dependence on the Soviet security umbrella has been prolonged by corruption scandals that have held up
deals with foreign partners that would have moved production to India.
"We can save huge foreign exchange by producing defence equipment at home," the source said.
"(We would) raise the FDI cap, (and) allow Indian companies to enter into joint ventures with foreign companies. It could be
an arrangement where Indian partners hold the majority stake, say 51 percent."
Elsewhere, the BJ P is expected to propose a national general sales tax - key to getting rid of a hodge-podge of existing
levies. More broadly, it will seek to improve tax collection by lowering rates and closing loopholes.
A "broad consensus" exists to overhaul the financial sector to turn India into an international hub, the source said.
Analysts caution that the BJ P and its allies, which polls show falling around 40 seats short of a majority, may end up having
to strike a series of compromises to cobble together a parliamentary majority.
"A lot of this is theoretical and open to question right now," said Deveshwar. "Let's see what kind of coalition is formed after
the election."
Tags: bjp | narendra modi | upa | fdi | tesco | wal-mart | manifesto | shumita sharma deveshwar |
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