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India Inc hails implementation of FDI in retail

The government on Thursday notified FDI in multi-brand retail operationalising the Cabinet decision.

twitter-logoPTI | September 20, 2012 | Updated 23:43 IST

Hailing the Centre's decision to implement FDI in multi-brand retail, the industry on Thursday said this will give a strong message to investors that the government means business and stands firm on its initiatives.

Industry body Assocham complimented the government on its firm decision on economic reforms.

"This will give a strong message to investors inside as well as outside the country that the government means business," Assocham Secretary General D S Rawat said.

The politicians must distinguish between politics and economics in the interest of the country. Though not much investments will be flowing from investors immediately but the message it carried is huge, he added.

The government on Thursday notified FDI in multi-brand retail operationalising the Cabinet decision.

The Department of Industrial Policy and Promotion also operationalised September 14 Cabinet decisions to relax the sourcing norms for foreign retailers investing beyond 51 per cent in single-brand retail and allow 49 per cent FDI by foreign airlines in the domestic carriers.

Besides, the decisions on permitting 49 per cent FDI in power exchanges and increase in foreign equity cap from 49 per cent to 74 per cent in the service providers like DTH in broadcasting sector have also been notified.

The development comes on a day when a nation-wide bandh was called by BJP, Left parties and UPA's outside supporter SP to protest diesel price hike and FDI in multi-brand retail evoked mixed response with life and trade being disrupted in some states.

CII said it is important to stay on track on reforms.

"The entire decision on multi-brand retail will go a long-way in capital infusion in the country and also leads to strengthening of linkages including benefits to farmers," CII Director General Chandrajit Banerjee said.

This is an important reform for India for both growth and development, he added.

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