Bhopal: The Union government’s approval of 100 per cent Foreign Direct Investment (FDI) in single brand retail has received mixed reactions from industry players and traders. While some industry observers lauded the move saying that it will generate employment, there were others who opposed it stating that it will pave way for the foreign brands to dominate the country’s retail trade.
Sceptical over coming of major companies in the state after decision of 100 per cent FDI in retail, some of the business experts said that despite a series of Global Investors Summits (GIS), the government could hardly attracted investors in the state. The benefits of liberalised FDI norm will remain centralized in metropolitan cities which are already flooded with big companies, they added.
Hailing the decision, Federation of Madhya Pradesh Chambers of Commerce and Industry (FMPCCI) president R S Goswami said that the decision will boost competitiveness in Indian market and consequently it will help to improve the quality as it will now have to be at par with international standard. “At present, branded products are being dumped into Indian market illegally but after allowing 100 per cent FDI everything will be legal,” said Goswami.
Kalpatru Multiplier Limited MD Adtiyamanya Jain said termed it as a positive step saying that it is good for Indian market. “FDI has been allowed for single branded companies so it will not harm Indian companies. Therefore, they (indigenous traders) should not be worried,” he stated.
Regional Director PHD Chamber of Commerce RG Dwivedi said that new foreign investment norms for single-brand retail will boost industries and the economy and will generate employment in the country. Brushing aside the apprehensions that it will harm the economy, Dwivedi claimed that on the contrary it will be beneficial as it will help to us to improve our quality. However, Akhil Bharatiya Vypar- Udyog Mandal Sangathan general secretary Anupam Agrawal flying the decision said that FDI will damage Indian market which is already in bad shape following the demonetisation. It will facilitate easy entry of multinational corporations in retail trade of the country and will have bad effect on small businesses houses. “We are not happy with 100 FDI in retail in Indian market. Earlier, the same party which is in power, had opposed FDI in retail and now it has allowed it. It is very surprising and we are against the decision,” said Agrawal.
When districts represented by chief minister Shivraj Singh Chouhan and finance minister for years, are among the most backward areas, how will FDI benefit the state, questioned some.
Former PHD chamber of Commerce Rajendra Kothari said that FDI will not benefit Madhya Pradesh as no company is interested in coming to the state. Speaking about the lack of infrastructure and conducive environment for investments and business, he said that even the district which CM and FM have been representing for years are among the most backward regions of the state. “FDI will though generate employment but how much it will generate only the time will tell. It will only benefit metro cities which are already flooded with branded products,” said Kothari.