New Delhi: The Government needs to relax norms on foreign direct investment in retail to facilitate fresh infusion of funds and also promote competition in the sector, which has been hit by the economic slowdown, real estate consultant CB Richard Ellis has said.
“The existing FDI rules are a constraint. There is need to open up the sector a bit more as it will facilitate fresh infusion of funds and also promote competition,” CB Richard Ellis (CBRE) Chairman and MD (South Asia) Anshuman Magazine said.
Currently, 100 per cent FDI is allowed in wholesale cash-and-carry business, while in single-brand retailing 51 per cent FDI is allowed but none in multi-brand retailing.
The Parliamentary Committee on Commerce had earlier this year submitted a report opposing further opening up of the retail sector for FDI.
However, a report by the Indian Council of Research in International Economic Relation (ICRIER) in 2008, had mooted liberal FDI norms in the sector saying the sector would grow to USD 590 billion by 2011-12, of which organized retail would have a share of 16 per cent.
Sharing ICRIER’s views, Magazine said: “(Currently) the share of organized retail is still very small in the overall market and has scope for growth.”
Have you read?:
The FDI will happen. I guess its just some time till the bigwigs get their real estate investments in right shape to take advantage of the influx of foreign players as well as their investments. All of us know investment in any economy will boost it. The control in this case I see is being utilised for gains at large thru a mutually created association of people with simillar interests. Lets see the feb 2010 It will answer most questions.
Bang On! This is the need of the hour. Infusion of fresh capital in Multi brand retail and e-commerce will help many starving start ups to manage the show and compete with big gaints. Will wait for the same till eternity.
Regards,
Sachin Singhal