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India should consider 100% FDI in multi-brand retail: CII

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The Indian Government should consider permitting 100 per cent foreign direct investment (FDI) in multi-brand retail trade and further improve ease of doing business for the sector to promote growth in the segment, the Confederation of Indian Industry (CII) said in a recent report. The suggestions are part of a national retail policy released by CII. 


Jointly prepared by CII and AT Kearney, the report said that to overcome barriers and enable a smooth growth and harmonious coexistence of traditional and modern retail, the government needs to adopt a single cohesive national retail policy, which adequately addresses all the concern areas, according to a news agency report. 



The policy suggested several steps, including strengthening labour laws by regularising policies around part-time labour to ensure greater participation of women in the workforce; and review of food safety policies to update archaic laws governing stocking limits, weights and measures, labeling, and taxes on expired food items. 



It also asked for decreasing real estate constraints for retail expansion by creating dedicated retail special economic zones as well as simplify regulations and real estate approvals for kiranas (small local stores) to expand their stores. 



The government should encourage modernisation of traditional retail by subsidising these retailers to adopt technology, the report said. Improved access to capital will help retail business especially the traditional retailers, it added. 

 

 

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