New Delhi: India Inc today said major announcements made by government, including operationalisation of 51 percent FDI in multi-brand retail, are huge “mood lifters”, besides dispelling the impression of any policy paralysis in the government.
Industry body CII said a day after the fuel price hike, these announcements are a tremendous boost not only to the sectors in question, but also are huge mood lifters.
“Today’s announcements on FDI caps has restarted the reform process. The move to enhance FDI caps will help increase capital flows which in turn should improve the current account deficit situation,” CII President Adi Godrej said.
The perception about India will now be corrected to some extent and hope that sovereign ratings of the country will improve, he added.
Sharing similar views Assocham said, implementing FDI in retail and raising foreign investment limit in broadcasting should immediately help improve the image of India as a global investment destination.
These decisions will surely dispel the impression of any policy paralysis in government, Assocham Secretary General D S Rawat said. The government today announced operationalisation of 51 percent FDI in multi-brand retail, allowing foreign carriers buy up to 49 percent stake in domestic airlines and further liberalised the broadcasting sector.
On operationilsation of FDI in multi-brand retail, Ficci President R V Kanoria said: “This reflects the resolve of the government to usher in a retail revolution in the country and also signal to the investor community that India is committed to furthering reforms”.
The states have been allowed to take a final decision on this subject and Ficci is hopeful that they will respond positively to this policy initiative, he added.
Bharti Enterprises Vice-Chairman and Managing Director Rajan Bharti Mittal said this is a landmark decision in India’s economic reforms process.
“Development of organised retail in India will bring immense benefits to stakeholders across the value chain – from farmers to small manufacturers and above all to consumers. Enhanced investment in the sector can further the cause of employment, particularly amongst youth,” he said.
He added, this decision will open the doors for much-needed technology and investments to develop the entire retail ecosystem in the country.
Welcoming the development, Future Group Founder and CEO Kishore Biyani said: “FDI in multi-brand retail is a welcome step and will help in creation of more jobs. People will realise it is a win-win for all”.
He said the group is now open for discussion with foreign companies as there is clarity in policy.