Multi-brand retail FDI to encourage competition: CCI
Coming to the defence of the government facing stiff opposition over opening multi-brand retail to foreign investment, the Competition Commission of India today said that entry of big players in the retail market would encourage competition.
October 07, 2012 / 20:03 IST
Coming to the defence of the government facing stiff opposition over opening multi-brand retail to foreign investment, the Competition Commission of India today said that entry of big players in the retail market would encourage competition.
"This (FDI in multi-brand retail) will promote competition, as we see it prima facie. At least by the stated objective. Let's see how it works. Once they come, their functioning will be clear and then we can see if at all there is a need to step in," CCI chairman Ashok Chawla told PTI.Notwithstanding the uproar by political parties, Chawla said that there would be no overvigilance of multi-brand retail. The sector, he said, would be regulated ‘like any other sector with no special dynamics'The Government's decision to allow 51 per cent FDI in multi-brand retail prompted UPA ally Trinamool Congress to withdraw support to the government. Other political parties including opposition BJP and Left parties too expressed their reservations on opening of multi - brand retail to FDI.The decision, however, was welcomed by the industry which described it as 'a huge mood lifter'.Experts too have viewed the move as a pro-reform process and something that would benefit all stakeholders -- farmers, small manufacturers as well as customers. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
