FDI in retail would unfold ample opportunities for MSMEs: Malvinder Mohan Singh

Interview with Chairman, CII (northern region)

Economic reforms are taking centrestage in the country and India Inc is gearing up for another post-reform era. Rising to the occasion, the Confederation of Indian Industries (CII) is creating synergies with stakeholders and assuming the role of a catalyst for change. In a conversation with Business Standard, Malvinder Mohan Singh, chairman, CII (northern region), who is also group chairman of Religare Enterprises and executive chairman of Fortis Healthcare, tells Komal Amit Gera about the road map drawn by CII to meet the challenges and benefits accruing out of a more liberalised regime. Edited excerpts:

According to the new guidelines for FDI (foreign direct investment) in retail, those opting to take FDI beyond 51 per cent would have to source at least 30 per cent of their merchandise from domestic micro and small enterprises. The northern states of India have a large concentration of micro, small and medium enterprises (MSMEs). How could they benefit?
We have a substantial number of members in northern region among MSMEs. The industrial sector in the north is thriving on the growth of MSMEs.

FDI in retail would unfold ample opportunities for MSMEs. CII, as an organisation, plans to provide a platform to its members to find opportunities in the new business model.

Ever since the tax holiday in the hill states came to end, the investment proposals to Himachal Pradesh have come to a standstill. Haryana has its law and order issues. High costs of land and labour in Punjab also act as a roadblock for fresh investments. How can the states in the north mobilise investments in such a situation?
Every state has its own set of strengths and weaknesses. The tax holiday may be over but Himachal has immense potential for investments in hrdro power, infrastructure and tourism. Other states in the region like Uttar Pradesh, Punjab, Haryana and Jammu and Kashmir have their own capabilities.

In order to mobilise investments here, CII has taken the initiative to organise an event, ‘Invest North’, in November this year. Such events may stimulate the investors to identify investment potential in the region.

Traditional clusters in places like Mandi Gobindgarh, Panipat, Yamuna Nagar, Batala, Ambala and Karnal are in a shambles. How can CII help to revive these cluster which have been offering employment to local as well as migrant labourers?
Business cycles effect every business. We at CII are running the CII Avantha Centre for Competitiveness for small and medium enterprises (SMEs).

The centre prepares customised programmes for clusters to teach them how to build in-house capabilities.

The centre takes initiative for state-of-the-art learning for SMEs so that they could decide on the most suitable and cost effective latest technologies in their respective fields.

The implementation of GST (goods and services tax) has been lingering on due to a delay in consent by state governments. Did you take any initiative to break the ice?
We at CII always try to create a bridge between policymakers and industry. We have shared our viewpoints with the chief ministers of the states about the benefits of the GST to the industry and economy as a whole. We hope for a positive outcome.