Even as the Commerce and Industry minister, Kamal Nath said a big no to relaxing Foreign Direct Investment (FDI) norms in retail in April, consumers and domestic retailers feel infusion of FDI will ease out financial constraints and provide technological exposure. A survey conducted by The Associated Chambers of Commerce and Industry of India (Assocham) on Indian Retailing: The Way Forward, which studied consumer and domestic retailers’ response to modern retailing said that the easing of FDI entry norms in multi-branded retail will expose domestic retailers to the best management practices followed globally. The findings of the yet to be published survey, a copy of which is with The Indian Express, noted that 90 per cent of domestic retailers favoured FDI in multi-branded retail, although with a cautionary note. FDI in retail should be opened in a phased manner over a period of time, allowing domestic players to upgrade to face global competition. Currently, government policy allows up to 51 per cent FDI in single-brand retailing, with prior government approval and 100 per cent FDI in case of trading companies for cash-and-carry wholesale trading.The survey recommended that retail sector be given industry status and PPP model should be encouraged for infrastructural development. It suggested that uniform quality standards should be enforced and a national retail policy should be evolved. Even though, retailers are making a beeline for plum real estate locations, more than 60 per cent consumers consider convenience of location as a deciding factor for their choice of retail store. The second priority for consumers remained discount sales or promotional offers run by retailers.
