'FDI in multi-brand retail will benefit exporters, SMEs'

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SME Times News Bureau | 08 Dec, 2012
The Indian industry has welcomed foreign direct investment (FDI) in multi-brand retail, viewing this will benefit Indian small and medium enterprises (SMEs) and exporters, by providing them greater market access opportunities and exposing them to emerging global trends.

Exporters' body FIEO Friday said allowing foreign direct investment (FDI) in multi-brand retail will help the Indian exporters, exposing them to emerging global trends as well as customers.

"Multi-brand retail will indirectly help the export sector as exporting units will get exposed to new trends emerging on the globe and shall be accessing large departmental stores for exports of quality products from the country," said Federation of Indian Export Organisations (FIEO) president M Rafeeque Ahmed, in a press statement.

Textile, leather, gems & Jewellery, handicraft, carpet and other life style products will be immensely benefitted from the FDI, he said.

After winning the vote on Foreign Direct Investment or FDI in multi-brand retail in Lok Sabha Wednesday, the UPA government Friday again dealt a blow to the opposition by winning a Rajya Sabha vote on FDI in retail by 14 votes.

Hailing the development, the PHD Chamber said that allowing FDI in multi-brand retail will benefit the Indian export sector.

"Going ahead, FDI in retail will not only lower inflation expectations by addressing supply side constraints, it will also benefit the small and medium enterprises by way of greater market access and higher profit margins," said the industry body president Sandip Somany.

"Clearance on FDI in retail will address the structural constraints to the economy and come as a revolution in the supply chain system, helping in reducing post-harvest losses and minimizing wastage," he added.

Industry body CII termed the Parliament debate results as as a "very positive development" and opined that the move will help strengthen the supply chains and attract more investment to the nation.

"CII believes that allowing FDI in multi-brand retail and other areas would lead to capital infusion in the country, which would help farmers and customers alike. Strengthening supply chains is imperative in our country, particularly since the wastage in our food produce is collosal. We are convinced that FDI in retail would only be beneficial for the country and not be disruptive in any manner," said CII president Adi Godrej in a statement.