Indo-US CEO Forum asked for FDI in retail: Govt

New Delhi, Nov 30 (PTI) Amidst a raging controversy over FDI in multi-brand retail, the Indian government today said it received a recommendation from the Indo-US CEO Forum to open up the sector, among other areas, for foreign investment. In a written reply in Rajya Sabha, the upper house of India's Parliament, Minister of State for Commerce and Industry Jyotiraditya Scindia quoted the Indo-US CEO Forum as having recommended enhancing of "Indian foreign direct investment (FDI) policy reforms through further opening up of key sectors such as insurance, private sector banks, retail and defence to foreign investors". Asked whether the government would accept these recommendations, the minister said, " ... the policy is reviewed on an ongoing basis with a view to making it more investor friendly". After the Indian Cabinet approved 51 per cent FDI in the multi-brand retail and removed altogether the cap on single brand retail on November 24, the government has come under attack not only from the Opposition but also from two partners - Trinamool Congress and DMK - in the ruling United Progressive Alliance. These parties have forced stalling of Parliament for the last four days demanding a roll-back of the decision, whereas the government has indicated that there will be no reversal of the policy. The Indo-US CEO Forum was constituted in July 2005 as a major initiative for enhancing bilateral trade and investment. It now comprises 12 Indian and 12 US CEOs. Co-chaired by Tata Group head Ratan Tata and Honeywell Inc's Chairman and CEO David Cote, the Forum last met in Washington in September this year. Finance Minister Pranab Mukherjee, Commerce and Industry Minister Anand Sharma, Planning Commission Deputy Chairman Montek Singh Ahlulwalia attended the Washington meeting. PTI