India Inc today welcomed the government's decision of allowing 100% FDI in single-brand retail, saying the move would have a positive impact on the employment situation in the country.
"It is a good move. This will help the micro and small enterprises," Ficci President Harsh Mariwala said.
Rajan Bharti Mittal, Vice Chairman and MD, Bharti Enterprise said the increased investments by foreign single-brand retailers will not only help improve consumer choice but also enhance competitiveness of Indian enterprises through access to global designs, technologies and management practices.
"Mandatory sourcing of at least 30% of the value of products sold from small and cottage industry sector will have a positive impact on the employment situation in the country. We hope the initiative is a precursor to further liberalisation in the sector in the days to come," Mittal said.
Sharing similar sentiments, Assocham said: "We hope political consensus will soon be evolved to allow 100% FDI in multi-brand retailing as well."
The government was forced to put on hold the Cabinet decision on allowing FDI in multi-brand retail by several political parties, including UPA ally Trinamool Congress.
