Industry body ASSOCHAM welcomed the government’s announcement to allow 100% foreign direct investment in single brand retail, saying it will lead to more choices for consumers, encourage domestic industry to become more competitive and improve inflows from foreign institutional investors into the country.

Sourcing at least 30% of the products from micro and small enterprises will benefit a large number of businesses. Mr DS Rawat general secretary said that “We hope political consensus will soon be evolved to allow 100 per cent FDI in multi brand retailing as well.”

He said that “That will be a big step as it will create lakhs of new jobs, curb agricultural wastages, benefit farmers with better remuneration for their produce and bring down prices of many commodities.”

He said that FDI in many sectors like information and communication technology have resulted in enormous spin off benefits including introduction of efficiencies and modern management practices.