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CoverStory

India allows 51 % FDI in multi-brand retail

Government gets bouquets & brickbats for a long-due move How They See it “We believe that allowing 51 percent FDI in multi brand retail is an important first step for government to further liberalise this sector. This policy change will allow us to connect directly with the consumer and save them money. By being ‘stores of the community’, we will also help them live better. We are willing and able to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation.”

Raj Jain, President,

Walmart India, MD & CEO, Bharti Walmart

"Cynical political parties are opposing reforms like FDI in retail, which could boost the growth of entire, interdependent e c o n o m y . Opposition parties support policies when in power and oppose them hypocritically when out of power. This must end.”

GR Gopinath, Founder, Air Deccan "The announcements have restarted the reform process. Easing FDI norms would help mobilise capital into these sectors and improve India’s current account deficit situation."

Adi Godrej, President, CII

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n a bold move, which has triggered wide protests, the UPA government has taken a decisive step to open the retail sector for foreign direct investment. Prime Minister Manmohan singh has described the decision as one which would spur economic growth and generate more productive jobs for the country’s youth. The decision to allow 51 per cent FDI in multi-brand retails was among a slew of measures announced by the government, hoping get India’s sagging economy back on growth track. Earlier, the Cabinet had cleared pending proposals on easing FDI norms in multi-brand retail, aviation, power trading exchanges and broadcasting. This came a day after the announcement on hike in diesel price and putting an annual cap on use of LPG cylinders

AgriBusiness & Food Industry w October 2012

to reduce the burden of fuel price subsidies. So far nine states and two union territories have agreed to allow FDI in retail. Allaying fears that FDI in retail would harm the interests of small traders, Montek Singh Ahluwalia, Deputy Chairman of Planning Commission, said, “I don’t think FDI in retail is a threat to small retailers. Modern retail is the expanding segment. Those who say the small sector would be hurt are wrong”. The verdict, however, evoked mixed response. Here are some positive and negative reactions:

Those who welcome the move:

Industry Pleasantly surprised by the sheer magnitude of the far-reaching measures unleashed by the government, leading industrialists have reacted with a great

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

AGRI BUSINESS & FOOD INDUSTRY  

India's only monthly magazine having maximum presence in National & International Exhibitions. Regular topics cover the food processing sect...

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