Published & Updated as on - 2010-09-10
NEW DELHI: Barely recovering from
the slump in the economy, organised retailers in the country today said the
sector should be given industry status, besides easing foreign investment norms
in the forthcoming Budget.
"Industry
status has been a long standing demand of the retail sector. Besides we also
want a relaxation in the foreign direct investment (FDI) norms," Retailers
Association of India chief executive officer Kumar Rajagopalan said.
Sharing similar views, Koutons Retail India chairman D P S
Kohli said: "Industry status has been a recurring demand of the retail
sector for many years since only then will the retailers be able to fully enjoy
the benefits of organised financing, insurance and fiscal incentives."
According to industry figures, only around five per cent of
the estimated over USD 450 billion Indian retail sector is currently organised.
Calling for easing of FDI norms, Rajagopalan said, "No
industry in India has grown without FDI participation and for retail to emerge
as a big player, more FDI should be allowed."
Besides, he said even if FDI norms are not relaxed in the
Budget, the government must give a clarification on FII and foreign PE funding
route as there is a lot of ambiguity.
Kohli said clarity on the issue will help Indian retailers
raise funds from abroad as the global liquidity condition is showing
improvement.
At
present, the government allows 51 per cent FDI in single brand retailing and
prohibits any foreign investments in the multi-brand segment.
Source:Times of India 20/2/10
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