New Delhi: Industry lobbies Friday welcomed the government’s decision to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail and said this indicated that reforms were back.
“The decision of the government to ease FDI norms in an array of sectors like multi brand retail, civil aviation, power trading exchanges and broadcasting is a tremendous boost not only to the sectors in question, but is a huge mood lifter,” the Confederation of Indian Industry (CII) said in a statement.
“The move to increase FDI caps in in these sectors will help mobilise capital into these sectors, which the country needs and would also improve the current account deficit situation, which was becoming alarming. Purely, from a policy point of view as well, yesterday’s announcements followed by today’s are an indication that reforms are back,” it added.
The Federation of Chambers of Commerce and Industry (FICCI) said the decision reflected the resolve of the government to usher in a retail revolution in the country and signalled to the investor community that India is committed to furthering reforms.
“There are several benefits that would flow from this decision. We will see infusion of new technology across the agriculture value chain as well improvement in the back end infrastructure,” said R.V. Kanoria, president of the chamber.
The Apparel Export Promotion Council (AEPC) said it was a win-win situation for everyone.
“With the amount of money to be invested in back-end, supply chain and farm sector will benefit. This move would help bring in the much needed capital for the sector. Even the small and medium enterprises will benefit. Eventually consumers will get a lot of choices and they will get products at better prices,” said A. Sakthivel, chairman AEPC.