Govt opens debate on FDI in multi-brand retail - Step in the right direction

Mritunjay Kapur, Managing Director, Protiviti Consulting Pvt. Ltd. has said that it is a step in the right direction on Govt plans for debate on FDI in multi-brand retail.

"This is a step in the right direction. Organized retail is only 5 per cent of the total trade in India, this is the main reason that supply chain in India is inefficient, because of which the farmer share is at least 30% -35% less of the final price of the produce (as compared to more developed nations) accordingly the consumer pays a higher price. A calibrated approach to liberalization of FDI will provide the impetus to build a strong supply chain in India, create efficiency and profitability in farming, generate employment and in a lot of ways help manage food inflation emanating due to supply constraints. However, to be successful the FDI policies must ensure growth and survival of the small retailers which could be through passing on the benefits of an organized supply chain, inclusive entrepreneurship etc".

Source : Equity Bulls

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