The government is going to be very cautious when it comes to allowing FDI in multi-brand retail outlets. This was said by the Department of Industrial Policy and Promotion Secretary R P Singh.

This is totally opposite to the kind of approach that is being followed in the defense sector.

Talking to a private news agency, PTI, Singh said, "We have left it (fixing a cap on FDI) open. Based on the response which we get from the stakeholders, we will take a view."

As per his views since the number of stakeholders in the sector are very high and so is their vulnerability, it is forcing the government to follow this strategy.

DIPP is responsible for the looking after the FDI in the country. It has also come out with a discussion paper and has invited the views of the people related to this sector by the end of this month.

As of now, world giants like Wal-Mart, Carrefour, Tesco and Metro want to enter the Indian market but are awaiting a clearance from DIPP.

Only 51 per cent FDI is allowed in the single brand retail while 100 per cent is allowed in ash-and-carry (wholesale) formats.