 "FDI in multi-brand to boost organised retail in India: CII")
New Delhi: Calling for an early implementation of the decision to allow FDI in multi-brand retail, CII today said the move would give a major boost to the organised retail and SMEs in the country.
The Union Cabinet had decided on November 24, 2011, to allow 51 percent FDI in multi-brand retail, but the same could not be implemented in the face of strong opposition from UPA-ally Trinamool Congress and several state governments.
The chamber said foreign direct investment in the sector is the next logical step after increasing FDI cap to 100 per cent FDI in single-brand retail.
[caption id=“attachment_416754” align=“alignleft” width=“380”]  Reuters[/caption]
“Early implementation (of the decision) would give a major boost to the all round growth of organised retail in the country having substantial positive impact on the growth of small and medium enterprises (SMEs),” it said in a statement.
It said foreign investment can help SMEs supply in large volumes, enhance quality and become a vendor to international players and increase the quality of products and become cost competitive in global arena.
Allaying fears that the global retail chains would severely impact small stores in the country, it said traditional trade will continue to have its own place and should not decline.
“Even in the last three years when modern retail has grown 24 per cent, unorganised retail has continued to grow, albeit at a slower rate of 10 per cent to 12 per cent,” it added.
CII also said the mandatory sourcing condition will help SMEs to achieve higher growth in sales, capacity addition, increased orders, qualitative improvements and branding of the products, technology upgradation and employment.
It said overseas companies have been strong participants in the India growth story.
“Their partnership has assisted in creating many new jobs across sectors such as automotives, IT, pharma and others. This would grow manifold with the advent of foreign investment in retail,” it added.
It said that in China, the organised retail is estimated at 20 per cent of the total retail sales, whereas in India, it stands at a miniscule 4 per cent.
“At a time when declining investments have led to slower GDP growth, the entry of foreign funds in retail would go a long way in boosting confidence,” the chamber said.
PTI
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
](https://images.firstpost.com/wp-content/uploads/2012/08/retail_reuters1.jpg){kind=link}