FIPB faces franchisee fan fury-Policy-Economy-News

Finance ministry officials are of the view that the move will lead to discrimination since many foreign brands such as Chanel, Marks & Spencer and Tommy Hilfiger are already present here, and restrictions will deny a level playing field to those who are waiting to enter the Indian market.

The food processing ministry is worried that infusion of technology brought in by brands like Pizza Hut and McDonalds—which operate here through franchisee arrangements—will be hampered. Similar is the concern of the textile ministry since a number of global brands operate here through franchisees and their arrival here has led to introduction of modern technologies.

Protectionism is a fact of life in foreign countries, but rarely works out for the best in the long run. The economic benefit is usually muted by higher prices.

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