FDI in multi-brand retail key reform for economy: FICCI

The government seems to be moving with some degree of spree as far as FDI liberalisation is concerned. It is learnt from sources that the final cabinet note on retail foreign direct investment (FDI) is likely to be issued next week.

Rajiv Kumar, Secretary General, FICCI feels that it is high time that the government should finalise the policy on permitting FDI in multi brand retail. Speaking to CNBC-TV18, Kumar said that FDI in multi brand retail is a very crucial reform for the Indian economy. If it comes through Kumar hopes that opposition party and rest of the political spectrum will not become an impediment to this. "When it happens, we will see that states are given the opportunity to take it forward as they would like rather than being given some sort of a uniform package, Kumar added. Below is the edited transcript of Kumar's interview with CNBC-TV18. Also watch the accompanying video. Q: A cabinet note on retail FDI which we understand will be finalised shortly. Given all of this do you think that the government is finally getting its act together and moving with a new sense of determination on second generation reforms? A: I very much hope so. My hypothesis has been that in our country the gestation period for a reform is seven years from the day the idea is conceived to the day it is implemented. FDI in retail has even crossed that time period. So, it is high time that the government does finalise the policy on permitting FDI in multi brand retail. I have seen the news that the CoS has approved it and that 51% FDI is very much on the cards. I do hope that when the final version comes out we will see that all those other conditions that had been stipulated earlier would have been done away with. I am really very glad to hear about the FDI in multi brand retail being finally out. If it does happen, there are two things I hope. Firstly, the opposition party and rest of the political spectrum does not become an impediment in this because it