Retailers and analysts welcomed the opening up of FDI in multi-brand retail but emphasised that in the Indian context, this involves a lot more complexities than just bringing in overseas money into the sector.

Mr Mritunjay Kapur, Country Manager of consulting firm Protiviti Consulting Pvt Ltd, says that it will be important for the Government and the retailers to roll-out plans that provide for inclusive growth and uplift very small retailers and kirana stores thorough various means.

The Bharti Walmart MD and CEO, Mr Raj Jain, says the company has to study the conditions and the finer details of the new policy and the impact it will have on its ability to do business in India. “We are willing and able to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation.”

Apart from the explosion of choice for the consumer, more job opportunities and the growth of the small and medium sector, the huge investments that MNCs make into the country will help in increasing tax (both direct and indirect) collections thereby benefitting the exchequer, points out Mr Akash Gupt, Executive Director, Tax and Regulatory Services, PwC.

If rolled out in phases and with proper checks and balances, the policy will directly impact multi-brand outlets and small retailers as it will customers, jobseekers, and farmers, says Mr Govind Shrikhande, Customer Care Associate and Managing Director, Shoppers Stop Ltd.

He points out that China has successfully demonstrated the execution of phased FDI opening in retail. After FDI in retail, Chinese retailers still hold majority of retail share and the number of small retailers doubled, he adds.

Related Topics