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    Govt's decision on FDI will boost global investor sentiments, says Anand Sharma

    Synopsis

    Anand Sharma could finally smile on Friday after Cabinet decided to go ahead with the policy. A triumphant Sharma spoke to ET about what the decisions mean for the country.

    Anand Sharma could finally smile on Friday after Cabinet decided to go ahead with the policy. A triumphant Sharma spoke to ET about what the decisions mean for the country.
    After 10 months of rigorous consultations with state governments and political allies to get foreign direct investment (FDI) in multi-brand retail through, commerce and industry minister Anand Sharma could finally smile on Friday after Cabinet decided to go ahead with the policy. A triumphant Sharma spoke to ET' about what the decisions mean for the country. Excerpts:

    Do you expect a turnaround in the sluggish FDI scenario in the country following the landmark decisions on allowing FDI in retail?

    The FDI scenario will definitely undergo a change. It will give a big boost to global investor sentiments. It is not just the government's decision on FDI in retail, but the other decisions as well, including civil aviation and power trading exchanges. It reaffirms the government's commitment to reforms.

    You took 10 months for consensus building. Can one be sure that this time the decision is final?

    Yes. We took a pause because we wanted to consult all stakeholders. Consensus building is a sincere endeavour of the UPA government and it is a democratic, transparent and inclusive process. Today's decision has been taken after consensus building and it is definitely a final decision. The notifications will follow soon.

    Are you confident that allowing FDI in multi-brand retail will actually lead to an improvement in back-end infrastructure and possible transfer of technology?

    Most certainly. It will come slowly. When foreign investors start investing, they will start building modern warehouses and other infrastructure.

    This is very important for the country as we are the second-largest producers of fruits and vegetables in the world and modern infrastructure is required to check post-harvest loss.

    When you say that 30% mandatory domestic sourcing for single-brand retail is to be done preferably from micro, small and medium enterprises, does it mean that investors also have the liberty of not sourcing from the small sector?

    In single-brand retail we have decided that it will be only mandatory to source 30% of your wares from within the country, but for multi-brand retail it remains compulsory to source 30% from the MSME sector.

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    5 Comments on this Story

    Srinath R.3002 days ago
    Someone who is not capabale of winning even a ward-level local election thinks that he can decide the destiny of this country. This price rise will sink UPA's fortunes even further.
    S.M. 3003 days ago
    I have never found an answer as to why the investors are so sentimental! As if making profit is a sentimental act. Anyway half of the cabinet is filled with un-elected comprador class! To hell with the sentiments of the people!
    andrew mohan charles3003 days ago
    Frontend finally meets Backend, as promised?
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