India Inc welcomed the government's decision to allow foreign direct investment (FDI) in multi-brand retail as the right move.
Adi Godrej, chairman, Godrej group, and president, CII, said: "I am happy to see it passed by Lok Sabha. It will help bolster the investments in the country and hopefully lead to strong economic growth."
Expressing similar sentiments, Sanjay Lalbhai, chairman and MD, Arvind: "It is good for everyone. We should encourage investments. Otherwise, how would investment scenario improve? It will help logistcis in the country and farmers get benefits from better prices."
Hailing the judicious decision taken by the political leadership, apex industry body Assocham has also welcomed the victory of the UPA government on FDI in retail.
"This would become a milestone in the economic reforms saga," said Rajkumar Dhoot, president of Assocham.
"The economy in particular, and the nation as a whole will derive lot of benefit from this move. The immediate effect would be spike in the inflow of much-needed foreign investment in India," Dhoot said.
Arvind Singhal, chairman, Technopak Advisors:
Finally, the debate must come to an end. The country has been discussing this for the last 10 years. Whichever way, the country has to move on. There are hundreds of other problems. Government should think about how to make retailing more efficient now on.
"There is already a lot of foreign investor interest in the Indian market. We had told our clients that the UPA will win the vote on FDI in retail in parliament. But now that retail FDI vote has been won, we will see renewed flows in India. Other bills like banking regulations, FDI in insurance and pension to be passed will also be passed now. The Indian markets will see further increase in FII flows over the next six months."
RV Kanoria, president, FICCI:
"It is a welcome development. We fully support the government on the issue. The country needs to move forward. We need to send a strong signal to foreign investors."
Chandrajit Banerjee, director general, CII:
"It is an important thing. It will boost the government's confidence to implement key economic reforms. This move would definitely help the government in passing the other important and pending reform measures very quickly."
Paresh Parekh, tax partner-retail & consumer products, Ernst & Young:
"It is likely to take 12 to 14 months for multi-brand international retailers to actually open hyper markets/shop in India since post business decision, the government's prior approval will be required for each case, then followed by land/store acquisition, supply chain development, etc. Further some retailers may find few conditions like minium $100 million investment, 30% sourcing from small industries, etc a bit cumbersome to satisfy."