US wants India to open FDI in multi-brand in retail

NEW DELHI: Impressing on India to open multi-brand retail to foreign investment,the US today said its companies are willing to help the Indian agriculture sector and strenghen its supply chain.

"Foreign direct investment will create jobs, often bring innovation. I think it (opening of FDI by India) will be a win:win situation for India and the US," Under Secretary of International Trade Francisco Sanchez said here.

He was talking on reporters on the sidelines of an Indo-American Chamber of Commerce and Industry.

Sanchez, who is leading a high level US business delegation, said," some of our MNC retailers are prepared to work with Indian companies, particularly in agriculture sector to make it more profitable, more efficient in terms of cold chain supplies".

The US giant Wal-Mart is among several global retail chains waiting in the wings to set up the multi-brand stores in the USD 550 billion retail market, 90 per cent of which is dominated by the neighbourhood kirana stores.

At present, India allows FDI only in single brand (51 per cent)and cash carry models of retail business (100 per cent).