NEW DELHI: The Indian small and medium enterprise (SME) sector is in favour of 100% FDI in single brand retail industry and also aims at speedier implementation of 51% FDI in multi-brand retail, said a survey on the Impact of FDI in retail on SME undertaken by the Confederation of Indian Industry (CII).
Centre's decision of compulsory sourcing of a minimum of 30% from Indian micro and small industry will be helping the SMEs to attain higher growth in sales, size of the industry, capacity addition, surged contracts/ orders, improvements and branding of the products, technology upgradation and employment.
Mr Chandrajit Banerjee, Director General, CII, said, “India’s growing retail boom is a success story. 51% FDI in multi-brand retail and its early implementation would give a major boost to the all round growth of organized retail in the country having substantial positive impact on the growth of SMEs.”
Recently, CII had taken up a comprehensive survey on Foreign Direct Investment (FDI) in retail on SME sector, mainly to assess the impact of the government’s proposal to permit 51% FDI in multi-brand retail and 100% in single brand retail on the Indian SME sector.
The CII Survey also stated that nearly 96% of the respondents from SME sector have full knowledge about Centre's previous decision to permit 100% FDI in single brand retail and 51% FDI in multi-brand retail and also of the recent notification in January this year.