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Allow 100% FDI in multi-brand retail to rein in prices – experts
May '10
Big-time global retail chains have been clamoring for a 100 percent foreign direct investment (FDI) policy for setting up multi-brand retail chain stores in India. The current policy stipulates only 51 percent FDI and that too in single-brand retail.

This restricts the amount of investment the retail sector has received in the last few years, in a market which totals to US $450 billion and which is dominated by street-corner stores, with organised retail accounting for just 6 percent of the cake.

Global retail chains like Wal-Mart and Carrefour have for long argued for 100 percent FDI, by saying that, this will reduce the supply-chain inefficiencies in the country and provide goods at affordable prices to the Indian consumers.

The current policy for global retailers stipulates setting up operations in only the whole-sale segment, which does not interest the retailers much except for the likes of Wal-Mart which has set up such a venture with the Bharati Group in India.

Experts are of the opinion that, to rein in inflation, which is galloping at a fast pace, the government should consider 100 percent FDI in the multi-brand retail sector, which they suggest the government should consider implementing, seriously.

There are indications that the government could take this advice seriously.

Fibre2fashion News Desk - India

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