New Delhi, Feb 12 (ANI): Union Commerce and Industry Minister Kamal Nath today said that the 49 percent cap on Foreign Direct Investment (FDI) in single-brand retail remained, and added there is no change in sectoral limits.
Talking to reporters on the sidelines of the 14th India Carpet Expo here, Nath said, "The government has rationalised the calculation of foreign investment norms keeping in mind the compression and depression in the global markets," he added.
"Now we have brought the concept of ownership and control in management together. We have integrated them and by this process, we expect, there will be further inflow of foreign investment into the country which is very essential at this point of time without disturbing the question of ownership and control," he added.
He also said that all efforts would be taken to support the Indian economy in times of a global slowdown.
India does not allow foreign direct investment in multi-brand retail and limits foreign investment up to 49 percent in single-brand retail.
Union Minister of Textiles Shankersinh Vaghela said that India is number one in handmade carpet exports in the world and total exports of carpet has reached at the record 875.71 million dollars in the year 2007-08 as compared to the year 2006-07 807.94 dollars.
The Expo is world acclaimed established fair on handmade carpets and other floor coverings in South East Asia, envisaging unique business oriented platform to the importers and exporters.
More than 200 exhibitors from Uttar Pradesh, Rajasthan, Jammu and Kashmir are displaying their trend setting designs of handmade carpets and floor coverings. Around 300 overseas buyers from USA, Germany, France and Italy are visiting the Fair.
The Indian carpet industry has the potential for expansion since adequate skilled manpower and raw-material is available and, moreover, Indian carpets have tremendous flexibility and adaptability.
The total export of carpets including the handmade woollen tufted, handmade silk, handmade staple/synthetic, cotton, rugs, druggets, and durries during the year 2007-08 was US 875.71 million dollars as compared to US 807.94 dollars in 2006-07.
The top exporting destinations are: USA, Germany, UK, Australia and France. (ANI)