Even as the modern retail sector in India was awaiting an announcement on further liberalising the country's foreign direct investment policy, the Union Budget for FY 11-12, presented in Parliament by Finance Minister Pranab Mukherjee on 28 February, played it safe by ignoring the issue altogether.
The 10 per cent excise duty on branded apparels and absence of the announcement on allowing FDI i



the retail sector has disappointed the industry.

Anuj Puri, Chairman and Country Head, Jones Lang LaSalle India, said, “The budget has made no mention of FDI in retail, which is a great disappointment since the sector seriously requires the benefit of foreign investments into multi-brand retailing. It would seem that the Union Budget 2011 pointedly ignored the larger issues affecting the Indian real estate sector at this sensitive stage of revival and growth.”

Basic customs duty on raw silk has been reduced from 30 to 5 per cent, which will have a positive impact on ethnic wear retailers.