Big players hail govt's move on FDI in multi-brand retail

Big players of organised domestic retail today hailed the government's move towards opening the foreign direct investment (FDI) in multi-brand retail as it will help consumers.

"It is an interesting move by the government," Future Group Founder and Group CEO Kishore Biyani told PTI as the Industry Minister today initiated a debate on throwing open the multi-brand retail for foreign investors.

Shoppers Stop CEO Govind Shrikhande said FDI in the sector would bring in competition.

"FDI should be allowed as it will provide more variety of products to consumers," he said, adding that prices too would become more competitive.

While the government initiated the debate, it did not indicate what would be the cap, if any, on foreign investments instead sought stakeholders view on it.

"The FDI percentage could be between 49 per cent to 51 per cent based on all considerations and the conditions should not be too onerous," industry body Ficci President Rajan Bharti Mittal said.

CII too said the move would help make Indian agriculture competitive by bringing in the strengths of modern science and technological base.

"For India to grow at an 8 to 10 per cent our agricultural sector has to grow at 4 per cent. For this to happen there is a need for reforms...," CII official Thomas Varghese said.

Another leading chamber Assocham, however, cautioned against 100 per cent FDI in the retail, which employs about 33 million people.

"FDI's participation in multi-brand retail should happen in a calibrated manner for which domestic industry needs a cooling off period of three years," Assocham Secretary General D S Rawat said, adding that the government should cap the foreign investment at 49 per cent.