India Inc welcomes 100 percent foreign equity in single-brand retail
Tuesday January 10, 2012 09:58:53 PM,
IANS
|
New Delhi: India Inc
Tuesday welcomed the government's move to allow 100 percent
foreign equity in single-brand retail.
"This is a welcome move with a clear potential to lift the general
mood in the economy. Increased investments by foreign single brand
retailers will not only help improve consumer choice but also
enhance competitiveness of Indian enterprises," said Rajan Bharti
Mittal, vice chairman and managing director, Bharti Enterprises.
"We hope the initiative is a precursor to further liberalisation
in the sector in the days to come," he added.
The government notifed norms, that among other things, said all
wholly-owned international brands will need to source 30 percent
of their requirements locally.
The government said that the move for allowing 100 percent foreign
direct investment (FDI) in single brand will attract investments
in production and marketing, improve the availability of such
goods for the consumer and encourage sourcing of goods from India,
according to a notification by the commerce and industry ministry.
Until now, global retailers owning a single brand had to look for
an Indian partner as the cap on foreign equity was 51 percent.
Industry body Federation of Indian Chambers of Commerce and
Industry (FICCI) too expressed its satisfaction on the
development.
"The move will not only mean more FDI but lead to employment and
also lead to more choices for consumers," said Rajiv Kumar,
secretary general, FICCI.
He said that the global retailers will also bring in international
standards and practices into the country.
"Global retailers are bound to bring in global best practices and
technology that will lead to a more competitive marketplace
benefiting the consumers,"
Kumar further said that the sourcing clause will benefit the small
and medium industries, as at least 30 percent of the value of
products sold from Indian small industries, artisans and
craftspersons.
"Clause will lead to a direct benefit for the SME sector."
The notification defined small industries as entities which have a
total investment in plant and machinery not exceeding $1 million.
FICCI expressed its hope that the government will be able to
implement its decision to allow 51 percent in multi-brand retail.
|
|
|
Home |
Top of the Page |
|
|
|
|
|
|
|
|
|
|
Top Stories |
Falsely tainted with
Mecca Masjid blast, compensation eludes these victims
They are the
worst victims of physical and mental torture by police in the
Mecca Masjid blast case. But like justice, compensation too seems
to elude them till date. »
Tortured for Mecca Masjid blast, money can't heal their wounds
Compensation, certificates to 61 Muslim youths
tortured in blast case |
|
Most Read |
Shehla Masood murder case: AIIMS forensic experts to visit Bhopal
With no
headway made in the five-month investigation into the murder of RTI activist Shehla Masood, a team of forensic experts from All
India Institute of Medical Sciences (AIIMS) is likely to visit »
|
Doctors fear, Malegaon becoming a hub for sex determination
tests
Radiologists of Malegaon say pre-natal sex determination tests
have never been an option for them. For, compared to the
population and area of the city, number of sonography centres in
Malegaon is far less than the actual requirement. Due to which the
daily patient turnover they get is enough
» |
|
News Pick |
Uttar Pradesh first phase poll shifted to March 3, counting March 6
Counting for the assembly polls in five states will
be held March 6 instead of March 4, the Election Commission
announced
»
Taj fest postponed due to
polls, Agra seethes with anger |
Congress, Trinamool ties reach new low
Ties between the Congress and Trinamool Congress reached a new low
Monday with the Trinamool leadership terming its ally as a
"shameless party" which is not ready to quit the state ministry
despite being asked to
» |
BJP demands action against Khurshid for
violating code of conduct
The Bharatiya Janata Party (BJP) Tuesday asked Chief Election
Commissioner S.Y. Quraishi to take action against
»
Khurshid
defends announcement of quota for Muslims |
|
Picture of the Day |
 |
Dhananjay Bele, President of Nashik
Industries & Manufacturers Association (NIMA). addressing the
industrialists' meet in Malegaon Friday. The meeting was
organised as part of Malegaon Mahautsav 2012, a
three day event which began on January 06.
(Photo:
ummid.com) |
|
|
|