Industry upbeat over FDI in retail

BHUBANESWAR: The decision of the Union Cabinet on FDI in multi-brand retail  might have raised hackles of the Opposition  and UPA allies but the industry is  upbeat. The opening of retail sector to FDI will not only offer wider choice with better quality to consumers  but also bring in more business opportunities for SMEs, said Chairman, CII Odisha State Council, BL Bagra here on Saturday. As investment in the sector increases, the quality of products will improve with greater transparency and easier monitoring of adulteration, counterfeit products and traceability.  With large investments expected in the sector, global retailers would leverage Indian manufacturing base more, once they are allowed to set up operations here.  There is an expectation of 30 per cent more buying from SMEs, particularly in India. As organized retail spreads, bulk buying from SMEs will increase, thereby meaning more business for SMEs, he said. Allaying apprehensions of elimination of the local kirana (grocery) sector by the retail expansion, Bagra said both can co-exist. In fact, wholesale cash-and-carry stores’ “Best Price Modern Wholesale” allows  thousands of kirana shops to flourish through access to quality, low-priced merchandise and produce.  On the positive side, the small retailers will increase their effort to enhance their customer proposition.