Financial Daily from THE HINDU group of publications
Thursday, Apr 14, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Industry & Economy - Foreign Direct Investment
Marketing - Retailing


FDI in retail sector to benefit India, says World Bank

Our Bureau

New Delhi , April 13

OPENING up the retail sector to foreign direct investment (FDI) would be beneficial for India in terms of price and availability of products, according to the World Bank.

At the launch of the Global Development Finance Report 2005 at a function, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), here, the World Bank Director, Development Prospects Group, Mr Uri Dadush, said, "The retail sector in India today is a case of low core sector, both domestically and internationally."

Asked whether FDI or using foreign exchange reserves would benefit countries such as India, Mr Dadush said the World Bank did not consider FDI as a primary investment source and one cannot see any trade-off between FDI and reserves.

Citing the report, he said the FDI inflow to India was estimated at $5.3 billion, higher than the $4.3 billion in 2003.

The World Bank has predicted that global growth will slow down to 3.1 per cent in 2005, as a result of the increase in US interest rates, fiscal tightening, and the effects of the 25-per cent real effective appreciation of the euro.

Further, 2006 may witness a slight deceleration in growth.

The report has cautioned developing countries on the need to make adjustments because of the risks posed by ballooning global imbalances, particularly the US' current account deficit.

It has embraced three key challenges: managing the vulnerability inherent in global economic and financial imbalances, confronting the risks posed by the growing market sensitivity of developing-country debt, and mobilising and diversifying sources of finance for low-income countries.

In order to minimise the risks, there is a need for developing countries to avoid excessive accumulation of debt, even when it is domestic debt, the report has stated.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Dumping probe on filament yarns from China, Ukraine


Global growth has moderated: IMF report
IT share in GDP may touch 4.1 pc
Qatar looking at strengthening trade ties
Crude futures slide 9-10 pc at MCX
Oil jetty at Paradip port commissioned
IOC plans to develop gas field in Iran
Petro product sales up 1.2% in March; diesel demand falls
Petronet looking for more LNG from Qatar
Dabhol's domestic lenders to buy out offshore debt — SPV to float bonds to raise funds
VAT panel to meet on April 16 to review progress
Truck, bus tyre production tops 8.9 lakh units
Study sees big bucks for cricket channel
Banks to scan closely educational trust loans
India records fastest growth in car production
FDI enquiries building up for mid-tier realty cos
FDI in retail sector to benefit India, says World Bank
Cell operators may roll out rural networks — Telegraph Act likely to be amended, says Dayanidhi Maran
Coir products export top Rs 460 cr
Seafood industry on alert as US FDA detains shipments — Banned antibiotic in shrimp imports


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line