Finally, FDI in Multi brand retail!
The Government gives nod to 51% FDI in Indian retail.September 15, 2012 | comments ( 0 ) |
The Cabinet has finally decided to operationalise 51 per cent Foreign Direct Investment (FDI) in multi-brand retail. However, it has left it to the state governments to allow setting up of stores.
The industry is upswing about it and has welcomed the news with open arms for the much awaited opening of 51 per cent foreign direct investment in Indian retail. The industry will get a boost and go to greater heights. Raj Jain, President Walmart India and MD and CEO, Bharti Walmart says, “We believe that allowing 51 per cent FDI in multi-brand retail is an important first step for Government to further liberalize this sector. We are grateful that the Government has realized and appreciated the value that we will bring to strengthen the Indian economy. This policy change will allow us to connect directly with the consumer and save them money.”
Commenting on the state's role, Dipak Agarwal, Chief Executive, Operations & strategy, DLF Brands says, “It’s a good move, and at least we have begun. The government has taken a bold step and in the right direction. Now we have to see how states co-operate to this policy.”
Vikram Bakshi, Managing Director, Mc Donald’s India commented at the Retailers Networking Meet organised by Retailers Association of India said, “"Much awaited 51 per cent FDI is announced, This was required for the infrastructure developments which include cold chain, supply chain, logistics, and also for marketing and promotion. Retailers welcome this particular decision by the government."
The Indian retail sector stands at about $450 billion with organised retail accounting for around five per cent of the total market. These numbers too will go higher, post this move.
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