FDI needed for modernisation; execution tough task: Experts

In an interview to CNBC-TV 18, Mukesh Butani, chairman, BMR Advisors and Rajiv Kumar, secretary general, FICCI give their opinions on the FDI in multi-brand retail passed by the Lok Sabha today. The UPA government today got the nod for FDI through a vote in Lok Sabha.

Below is the edited transcript of Bhutani and Kumar's interview to CNBC-TV18. Q: Do you believe that this is it? Do you believe the FDI in retail is a done deal today? Kumar: Ofcourse it is a done deal today. It should have been a done deal many years ago. However, I can't see this now being reversed. I am actually quite sad and disappointed to hear some reports that say that the NDA representatives have said that if and when they will come to power, they will reverse this decision. I hope that's just not true, because they had rightly supported this change, this reform. They know this reform is necessary for modernisation of the Indian economy. They would do well to not take this one up as their policy plank, because that will do a great deal of disturbance to this country and to the people of this country because retail trade has to be modernised. Sushma Swaraj has been saying that this is not rocket science. Yes, it is not rocket science, but it does require very specialised skills and management technologies to be used, which I am afraid Indian domestic retailers do not have. Q: There seems to be consensus that this is a done deal. It may not actually require to go through Rajya Sabha at all. Each state government has the right to decide whether they will allow multi-brand retail or not. They will finally be the ones issuing the license to a multi-brand retailer. What is this actually going to mean in terms of implementation on the ground? Butani: I think it is an uphill task. Firstly, a lot of people forget that there is a Public Interest Litigation (PIL) filed by ML Sharma and I think the government still has to close on that PIL. So, I think whether you require an amendment to Section 48 or not, that's eventually something the Supreme Court is going to decide. All the Supreme Court had said is that the press note opening up retail FDI is not adequate. So, I think that question in my view remains open.