Global retailers welcome liberalisation of FDI in India
Major retailers gathered at the three-day World Retail Congress here believe that despite restrictions in recent FDI announcements in India, there will be "tremendous interest" after its implementation.
London: Major retailers gathered at the three-day World Retail Congress here believe that despite restrictions in recent FDI announcements in India, there will be "tremendous interest" after its implementation.
Some, however, said they would prefer to wait-and-watch on these reforms.
Speakers at a special session focussed on India, welcomed India's decision on allowing 100 percent FDI in single brand and 51 percent in multi-brand retail.
There is a cautious optimism. An executive of a UK retailer said nobody was "rushing in" as of now. Sarah Cordey, a senior official at retail major Tesco said: "Tesco welcomes this positive development but we await further detail."
"We already have a successful franchise arrangement with Tata's Star Bazaar stores and are hopeful that the development will allow more Indian consumers, businesses and communities to benefit from world-class retail investment," Cordey added.
Consultancy major Deloitte's Director of Global Economics Ira Kalish said: "Although the announcement comes with a number of restrictions the major the major retailers will take tremendous interest in these developments."
He added, "There is the potential that further liberalisation will really open up the market and retailers will be looking at partnerships and joint ventures to start preparing for this."
Senior industry people from India present at the Congress said that the Manmohan Singh-led government's attempt to push through retail reform will succeed despite fierce opposition in some political circles.