Government announces new FDI norms

The Indian Government has recently announced 51 per cent foreign direct investment (FDI) in multi-brand retail and 100 per cent FDI in single brand retail which was earlier 51 percent. Retailers and analysts, who had given up on Indian doors opening to FDI in multi-brand retail as a distant dream, have welcomed the move. 

Expressing his views on the same, Sanjiv Goenka, Chairman, RP-Sanjiv Goenka Group, said, "I welcome the cabinet's approval of allowing 51 per cent in multi-brand retail with open arms as this will propel the growth of organised retail in the country. This is ample proof that the government is focussed on pursuing the reforms agenda which is very good news for the economy. This is good for the consumers too, as this will lead to disintermediation of the supply chain and bring substantial investments and technology in the back-end thereby reducing wastages and improving efficiencies which will have a softening impact on inflation in the long run.”  

Mark Ashman, CEO, Hypercity, commented, "We believe that these changes are welcoming and a good news for the Indian consumer, good news for the retail industry and good news for suppliers and manufacturers. International retailers will bring further investment and experience to our growing retail industry. Competition is good for business, with the best companies growing stronger.”

Ashutosh Garg, Chairman and Managing Director, Guardian Lifecare, opined, "“Guardian Pharmacy strongly supports the Government decision to open up foreign direct investment in multi brand retailing. As a major player in the organised pharmacy retail in our country, we have been making significant investments in our supply chain and retail stores to provide the consumer with a much higher level of service in our pharmacies. With access to more capital, we hope to continue to strengthen this further across the country. In addition, by bringing in efficiencies into the procurement process and managing inventory levels, Guardian hopes to drive down prices of key medicines for the overall benefit of the consumer.”