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Corporates split over FDI in retail trade

Our Bureau

NEW DELHI, March 15

THE Federation of Indian Chamber of Commerce & Industry (FICCI) survey on FDI in retail trade reveals that the corporate sector is split over the issue.

The survey observed that while the big retailers are in favour of entry of FDI into retail trade, the small retailers are strongly opposed to it.

While small retailers are strongly against entry of FDI in retail, 88 per cent of the big retailers are in favour of entry of FDI, leaving 12 per cent of the respondents from big retail trade not in favour of FDI in their segment. These respondents, however, welcomed FDI with a 26 per cent sectoral cap.

Almost half of those (50 per cent) who support entry of FDI favour a no-holds-barred 100 per cent permission for FDI in retail trade. About 36 per cent of these respondents, however, prefer a more cautious approach and would like a ceiling of 49 per cent. Remaining 14 per cent will like the cap to go up to 51 per cent, the survey said.

On the issue whether restrictive conditions be imposed if FDI in retail were allowed 63 per cent responded in the affirmative. While remaining 37 per cent did not want any such conditions.

The survey was conducted among the big retailers including small developers as well as with a cross section of small retailers in the country, FICCI said. Among the big names who responded to the survey were: Ebony, ITC, Life Style, Arcus, McDonald, Pall Mall, Ansal Plaza, Saregama and Arvinds.

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