U.S. diplomat welcomes India's FDI in retail decision

By ANI 

Chandigarh, Nov 30 (ANI): Backing the Indian government's decision of allowing 51 percent Foreign Direct Investment (FDI) in multi-brand retail, US Charge d' Affaires Peter Burleigh has said the move would eventually prove to be beneficial to both farmers and consumers.

Talking to reporters here, Burleigh said apprehensions were insignificant as FDI in retail in major economies like China did not negatively impact small traders and farmers, contrary to common perception.

"I think examples around the world, countries which have FDI in retail, which are some very important economic countries including China are...the concern that small traders and small merchants in villages and towns will be badly impacted by this (FDI into multi-brand retail) that ...they will not be competitive, it has turned out to be not true," he added.

He further said FDI in retail would help in bringing down prices of goods for the consumers and it will also ensure stability to the farmers in terms of their produce.

"I think again the record is very clear in countries that have gone in this direction that prices for consumers would go down, you can have stable prices for farmers over time," he added.

Last Thursday, the Cabinet approved 51 percent FDI in multi- brand retail, As per this move, many global retailers like Wal-Mart, Carrefour and Tesco can open outlets in India.

The Cabinet also decided to remove the 51 per cent cap on FDI in single brand format under which companies in food, lifestyle and sports business run stores. Owners of brands like Adidas, Gucci, Hermes, LVMH and Costa Coffee can have full ownership of business in India.

Foreign Direct Investment (FDI) or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor. (ANI).

               

                                          

With Regards:

Aashish Mittal