Indian Food Services market to grow at a CAGR of 10% to reach INR 5,52,000 crore in 5 years: FICCI-Technopak Report
While appreciating the Government's move to liberalize the FDI norms for Single brand retail and Construction development, Anil Khaitan, President, PHD Chamber of Commerce and Industry said, "That the decision will open up the endless opportunities for global investors in the ever-growing retail industry in India."
"Allowing 100 percent FDI under automatic route for the Single Brand retail will provide impetus to the development of infrastructural capabilities like warehousing and assist in creation of a well-organized and agile retail supply chains," said Anil Khaitan.
"This breakthrough will open up millions of new employment opportunities, a push to investment activity in the economy and expansion in economic growth trajectory in the coming times," added Anil.
However, the President opined that, in the long run, overall business environment would benefit from the FDI reform in the country and should not have any negative spillovers on local domestic stores such as mom and pop stores.
"Innovation and expertise in association with FDI will help in reducing the costs that will increase the welfare of both consumer as well as the seller, going ahead," he added.
"The move is expected to pour-in funds from all over the globe, fuelling the rapid development of the sector in India. India's retail segment is rapidly changing, is highly customer driven and provides success through local networks, said Mr. Anil Khaitan.
"FDI holds the potential to facilitate the local Indian businesses' ability to improve their efficiency and gain competitiveness due to positive spillover effects across sectors, he added.
He added that although India's organized retail sector is in a nascent stage, it has today become a potential target for FDI from across the world.
"Today, India offers one of the most conducive investment opportunities for mass investors and retailers looking to expand overseas as Indian economy is growing at a strengthened pace coupled with high purchasing power and eased norms," said Anil Khaitan.
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