New Delhi, Sept. 14: Corporate India today said the government’s policy decisions, including operationalisation of 51 per cent FDI in multi-brand retail, were huge “mood lifters”.
“Today’s announcements on FDI caps (in power exchange, aviation and broadcasting) has restarted the reforms process. The move to enhance FDI caps will help increase capital flows which in turn should improve the current account deficit situation,” CII president Adi Godrej said.
The perception about India will now be corrected to some extent and sovereign ratings may improve, he added.
Assocham said implementing FDI in retail and raising foreign investment limit in broadcasting will surely dispel the impression of any policy paralysis in the government, Assocham secretary- general D.S. Rawat said.
On implementation of FDI in multi-brand retail, Ficci president R.V. Kanoria said: “This reflects the resolve of the government to usher in a retail revolution and signal to investors that India was committed to furthering reforms.”
Bharti Enterprises vice-chairman and managing director Rajan Mittal said this was a landmark decision in India’s economic reforms process. “Development of organised retail in India will bring immense benefits to stakeholders across the value chain,” he said.
Bharti Enterprises chairman and Group CEO Sunil Mittal said: “The policy decisions announced by the government will boost sentiment within the domestic industry and provide much needed momentum to the economy.”
Apparel Export Promotion Council chairman A Sakthivel said: “Implementation of FDI in multi-brand retail is a win-win situation for everyone.”
Real estate consultant Knight Frank regional director (north) Mudassir Zaidi said: “With new players coming in, we will also see lots of new demand for retail spaces.”
Spencer’s Retail chairman Sanjiv Goenka said the announcements showed the government’s intention to put reforms back on the agenda.