More states will realise the benefits of allowing FDI in retail in a short time and accordingly "fall in line" to allow multinationals to open stores in their respective regions, Godrej Group Chairman Adi Godrej said Monday.
New Delhi: More states will realise the benefits of allowing FDI in retail in a short time and accordingly "fall in line" to allow multinationals to open stores in their respective regions, Godrej Group Chairman Adi Godrej said Monday.
"My guess is that it will start with only some of the states allowing (it). In a short period of time, the others will see how beneficial it is for their consumers and farmers and they will also fall in line," Godrej told reporters here on the sidelines of the Indian School of Business (ISB) launching a new master’s course.
As of now only ten states have endorsed the Centre's decision to allow FDI in multi-brand retail. The states and Union Territories which support the initiative include Delhi, Manipur, Daman & Diu and Dadra and Nagar Haveli.
Godrej said that there were various states which stayed away when VAT was introduced but after witnessing the benefits they too adopted it.
Speaking about benefits of allowing FDI in retail in the country, Godrej, who is also the President of industry body CII, said the move will create competition in the country and benefit the consumer.
"I think, what is very good about allowing modern retail in the country, (is) it will create more competition. More competition is always good, especially for the consumer," said Godrej, who is also currently the Chairman of ISB board.
He said the opening up of the sector will also help investment in the supply chain, which will be good from the farmer's point of view.
When asked about the budget wish list, Godrej said the most important issue would be to ensure that it is a "growth oriented budget" and gives a boost to the country's GDP.
"I think some of the steps which have been taken are growth oriented and whatever it takes to bring the GST earlier," Godrej said.
He added that bringing in GST earlier would be a tremendous boost to the Indian economy.
When asked about his views on the Land Acquisition Bill, Godrej said that the bill should be fair and just for all stakeholders.
"It should be fair on both sides. It should not be either too much in favour of government and industry in land acquisitions and it shouldn't be in favour of farmers either. It should be a balanced bill. I think that's quite possible," Godrej said.
He added that that many of the industry's suggestions have been incorporated in the bill and still there is discussion going on.
"I do hope that ultimately it will be a fair and just bill," Godrej said.