The Indian government has categorically informed the European Union (EU) that it will not allow European multibrand retail firms to set up shop here, even as both sides decided to resume negotiations towards concluding the long-pending Bilateral Trade and Investment Agreement (BTIA).
While the negotiations for a BTIA, or a free trade agreement (FTA) as it is better known, started in 2007, it has missed two deadlines since then.
The government told EU it cannot allow the entry of multibrand retail chains due to political compulsions, although this is allowed under the foreign direct investment (FDI) policy.
(Source: Business Standard )