New Delhi: India Inc on Thursday hailed the government's decision to allow 51 per cent FDI in multi-brand retail while completely opening single-brand retail to overseas investors, saying the move would help bring in the much needed capital for the sector.
"It is a win-win situation for everyone. With the amount of money to be invested in back-end, supply chain and farm sector will benefit," Future Group Chief Executive Officer Kishore Biyani said.
Even the small and medium enterprises will benefit. Eventually consumers will get a lot of choices and they will get products at better prices, he added.
Shoppers Stop Vice Chairman B S Nagesh said: "I welcome FDI in retail. Capital is required for the market whether it comes from domestic or foreign investors, it will help grow the sector in the next 3-5 years."
Commenting on the impact of opening the sector to foreign players he said: "There will be no impact on the domestic industry as there is enough market. At the end of the day the consumer will benefit."
Sharing similar view, industry body CII said it strongly supports the introduction of FDI in multi-brand retail as it would benefit consumers, producers (farmers), small and medium enterprises and generate significant employment.
"This would open up enormous opportunities in India for expansion of organised retail and allow substantial investment in the back-end infrastructure like cold chains, warehousing, logistics and expansion of contract farming," CII President B Muthuraman said in a statement.
Previously, no FDI was allowed in multi-brand retail while in the single-brand retail only 51 per cent was allowed. In the wholesale cash and carry, 100 per cent FDI is allowed.
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