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STPI chief: FDI in retail will help IT SMEs in India

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Supriya Rai
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BANGALORE, INDIA: There is still an open debate on whether FDI in retail would be beneficial to Indian enterprises, especially the small and medium ones, in a way or the other or it would kill them in the process. But, the director-general of Software Technology Parks of India (STPI), Omkar Rai, strongly believes that it would help SMEs a great deal. ''FDI has been allowed in IT since 1991 and in retail, too, most of Indian SMEs would benefit a lot with the entry of foreign giants,'' he said in an exclusive interaction with CIOL, at the sidelines of Bangalore IT.biz 2012. According to Omkar Rai, related development in tier-II and tier-III cities, like Chandigarh, would fuel the growth of Indian SMEs in the IT space, as they would be in for smaller technical projects and supply chain management. Further, he quashed doubts over the possibility of only Indian IT majors getting the most out of foreign companies’ entry into the retail segment of the country. J. Parthasarathy, director of STPI Chennai and Bangalore regions, buttressed the argument by citing the example of U.S.-based fast food chain Kentucky Fried Chicken, popularly KFC, foraying into the F&B sector of the country. “It has immensely benefited our farmers and poultry owners. Likewise, FDI in retail would help small and medium enterprises in India.”

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