UP Inc welcomes FDI in retail

Uttar Pradesh industry has welcomed the central government decision to allow 51 per cent Foreign Direct Investment (FDI) in multi brand retail and 100 per cent in single brand formats in India.

Industry opined the decision would greatly boost organised retail in India and drive inclusive growth.

Confederation of Indian Industry (CII) UP State Council chairperson Ved Krishna said FDI in retail could be an engine of growth offering more job opportunities.

“Agrarian states like UP would immensely benefit by way of backward integration and investment in farm. The state would be able to move its produce more efficiently across the country, allow substantial investment in backend infrastructure like cold chains, warehousing, logistics, expansion of contract farming and development of small and medium enterprises,” he noted.

“New jobs will be created in front end and back end leading to a positive impact in regional economy. This will have positive bearing on agriculture with benefits accruing to farmers and consumers. This will bring in global best practices in agricultural marketing and sourcing of raw materials. Farmers will benefit from better price and profit realisations,” CII state unit vice chairperson Alok Saxena said.

According to a report authored by Boston Consulting Group (BCG) and CII, ‘Building a New India’, the current size of domestic organised retail stood at close to $28 billion or six to seven percent of total retail. The total retail market is estimated to grow to $1,250 billion by 2020, of which 21 per cent would be organised sector.