Suspending FDI in retail disappointing: India Inc

NEW DELHI, INDIA: Terming the government's decision to put on hold the new FDI policy highly disappointing, various industry leaders said that it is a step backward at a time when India needs influx of capital in the retail sector the most.

The Associated Chambers of Commerce and Industry of India (Assocham) said that this is a missed opportunity and it will dent the country’s image as a global investment destination and put further pressure on the falling rupee.

“It is a clear case of missed opportunity which would have created over 10 million of new jobs in three years, curbed agricultural wastages, benefited farmers with better remuneration for their produce and brought down prices of many commodities for consumers,” said D.S. Rawat, secretary general, Assocham.

Also read: Don't politicise new FDI policy: CII

“It is a highly regressive move,” said Harsh Mariwala, president of the Federation of Indian Chamber of Commerce and Industry (FICCI).

Chandrajit Banerjee, director general of the Confederation of Indian Industry (CII) expressed hope that the suspension of the new policy will not turn into a rollback.

Ealrier, finance minister Pranab Mukherjee made a brief statement in the Lok Sabha and read out the resolution passed in the all-party meeting.

“The decision to permit 51 per cent FDI in retail trade is suspended till a consensus is developed through consultation among various stakeholders,” a one-paragraph resolution passed in the meeting said.