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DOORS MAY OPEN FOR FDI IN MULTIBRAND RETAIL
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DOORS MAY OPEN FOR FDI IN MULTIBRAND RETAIL
The newly elected UPA government may consider allowing FDI in the multi-brand retail. Senior officials in commerce ministry feel that reforms, which hitherto were put on the backburner, will now be fast tracked for all sectors including retail.
“There is a case for the government now to act or it will be against their mandate for development. This is an opportunity for the government,” said a senior official in the commerce ministry.
The erstwhile Left allies torpedoed government’s move to extending FDI in retail to sports and engineering goods. This may be the first step in expanding the FDI matrix in retail sector. Organised retailers have been demanding spread of FDI into multi-brand retail and an industry status for the retail sector. The present rules do not permit any foreign company to invest multi-brand retail outlets. However, 51 percent FDI (foreign direct investment) is allowed in retail of single brands. The retailers too seem upbeat on talks of reforms being put on fast track.
“I do hope that the newly elected government will give a fresh look at the demands of retailers. Issues like allowing FDI in multi-brand retail need to be considered so that access to capital becomes easy for the retailers,” Raghu Pillai, president & CEO, Reliance Retail said.
Agreed Sanjeev Goenka, vice-chairman Spencers, “Yes its expected that the government would expedite reforms process, wherein it will be more open to FDI in multi-brand retail. The sector should also be accorded industry status and cheaper credit options be made available.”
Ambeek Khemka, group president of Vishal Retail and BS Nagesh, CEO Shoppers Stop too echoed similar views. “Retail is a growing sector where a lot of foreign money can come in,” said Khemka. “Money in any form is welcome as long as it benefits the industry.”
The single brand retailers too were hopeful that the FDI limits would be raised from 51 percent. Rajiv Mehta, MD Puma India said, “If FDI is liberalised it will help bring about best practices into the country and also the best prices from lowest end to the highest.
However, Titan Industries MD Bhaskar Bhat had his doubts. “I doubt if FDI in retail will be put on fast track. Organised retail`s ability to stand downturn has not been established as yet.”
Arvind Singhal, chairman, Technopak believes that the election results with overwhelming majority for Congress-led alliance has brought good news for policy-making.
Source:
http://Vivek Sinha & Nayanima Basu, New Delhi, May 18, 2009, Financial Chronicle
“There is a case for the government now to act or it will be against their mandate for development. This is an opportunity for the government,” said a senior official in the commerce ministry.
The erstwhile Left allies torpedoed government’s move to extending FDI in retail to sports and engineering goods. This may be the first step in expanding the FDI matrix in retail sector. Organised retailers have been demanding spread of FDI into multi-brand retail and an industry status for the retail sector. The present rules do not permit any foreign company to invest multi-brand retail outlets. However, 51 percent FDI (foreign direct investment) is allowed in retail of single brands. The retailers too seem upbeat on talks of reforms being put on fast track.
“I do hope that the newly elected government will give a fresh look at the demands of retailers. Issues like allowing FDI in multi-brand retail need to be considered so that access to capital becomes easy for the retailers,” Raghu Pillai, president & CEO, Reliance Retail said.
Agreed Sanjeev Goenka, vice-chairman Spencers, “Yes its expected that the government would expedite reforms process, wherein it will be more open to FDI in multi-brand retail. The sector should also be accorded industry status and cheaper credit options be made available.”
Ambeek Khemka, group president of Vishal Retail and BS Nagesh, CEO Shoppers Stop too echoed similar views. “Retail is a growing sector where a lot of foreign money can come in,” said Khemka. “Money in any form is welcome as long as it benefits the industry.”
The single brand retailers too were hopeful that the FDI limits would be raised from 51 percent. Rajiv Mehta, MD Puma India said, “If FDI is liberalised it will help bring about best practices into the country and also the best prices from lowest end to the highest.
However, Titan Industries MD Bhaskar Bhat had his doubts. “I doubt if FDI in retail will be put on fast track. Organised retail`s ability to stand downturn has not been established as yet.”
Arvind Singhal, chairman, Technopak believes that the election results with overwhelming majority for Congress-led alliance has brought good news for policy-making.
Source:
http://Vivek Sinha & Nayanima Basu, New Delhi, May 18, 2009, Financial Chronicle
