Monday, December 12 2005 15:44 Hrs (IST) - World Time -

Kuala Lumpur: Recognising immense opportunities of foreign investment in retail, Prime Minister Manmohan Singh today (Dec 12, 2005) hinted at an early decision on opening up of the retail sector for FDI. "Recognising the immense opportunities in this area, it is being debated within the Government. We will come up with positive outcome in 5-6 months," he told business leaders ahead of his meeting with Asean leaders and the East Asia Summit.

Singh, however, admitted there were problems on opening up the retail segment to FDI.

The UPA government has been facing stiff opposition from its allies Left parties on FDI in retail apart from hike in the foreign investment limit in insurance.

After assuming office, the United Progressive Alliance (UPA) has raised the FDI limit in civil aviation from 40 to 49 per cent and in telecom from 49 to 74 per cent.

Though Finance Minister P Chidambaram had announced last year a hike in insurance FDI from 26 to 49 per cent, it could not be done as the IRDA Act has to be amended for this purpose. The Prime Minister, who is meeting Asean leaders tomorrow, said his country was aiming at a high 9-10 per cent growth for which he promised to 'dismantle unwanted barriers' to attract 150 billion dollars in infrastructure sector.

In the past year and a half, our policies relating to investment, taxation, foreign trade, FDI, banking, finance and capital markets have evolved to make Indian industry and enterprise more competitive globally, he added.