Commerce and Industry Minister Anand Sharma has assured that FDI in multi-brand retail sector will not hurt small traders and farmers.

Addressing a press conference in New Delhi he said that it would give a boost to the economic climate of the country through foreign investment.

Anand Sharma added that a number of safeguards have been provided which will ensure that concerns of certain sections are addressed.

These include- FDI to be limited to cities with a population of more than 10 lakh and thirty percent of procurement would be through small industries.

Guidelines have also been given on minimum investment in backend activities like marinating supply chain and warehouse.

Earlier in the day, in a statement, Commerce and Industry Minister Anand Sharma said both in the Lok Sabha and Rajya Sabha that the policy on single brand retail has also been liberalised, removing the 51 per cent cap on Foreign Direct Investment (FDI).

Allowing FDI in multi-brand retail, which is dominated by neighbourhood stores, will be subject to riders including a minimum investment of USD 100 million (Rs 5,200 crore).

At least 50 per cent of the investment would in the back-end infrastructure like cold storage, packaging and other logistics.

The global retail chains like Walmart and Carrefour will have to source at least 30 per cent of their requirements from small industries. Besides, they will be allowed only in cities with one million people.