Budget 2012: Allow FDI in multi brand retail, says DTZ

FDI in multi brand retail should be allowed in larger tier 1 and tier 2 cities. This will not only provide a good source of much needed investments in Indian retail sector

By Agencies | Updated: Feb 11, 2012, 04.02 PM IST

NEW DELHI: Retail is a capital intensive sector and requires large investments not only to set up outlets (real estate cost) but also in developing support infrastructure like logistics, warehouses, cold storages, etc.

The prescribed norms for allowing FDI in multi brand retail by Committee of Secretaries (CoS) earlier in 2011 strikes a good balance in maintaining interest of local retailers.

The stiff riders like sourcing at least 30% of products from small and medium scale enterprises, selling at least 30% of products to small retailers and ceiling on number of outlets and cities will ensure that local retailers are safeguarded.

Suggestion:

FDI in multi brand retail should be allowed in larger tier 1 and tier 2 cities. This will not only provide a good source of much needed investments in Indian retail sector but also help in increasing employment, curbing inflation levels, etc.

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