Cap FDI in retail at 25%: Nagesh
After opposing FDI in retail, new generation domestic retailers appear to be resigned to its eventuality, but demanded that there should be a 25 per cent cap on such investment.india Updated: Jan 21, 2006 13:19 IST
After opposing FDI in retail, new generation domestic retailers appear to be resigned to its eventuality, but demanded that there should be a 25 per cent cap on such investment.
"FDI cannot be stopped but the equity participation should be capped at 25 per cent for two to three years the way it was done in telecom or insurance sector," retail chain Shoppers' Stop Managing Director and CEO BS Nagesh said at the Western India trade conference on Friday.
Approximately three million customers shop abroad and spend Rs 40,000 on a three day visit and to tap these customers, FDI should initially be allowed in high end premium sectors, he said.
Once allowed entry, Nagesh suggested that foreign retailers should contribute to development of infrastructure like roads.
Shoppers Stop and other domestic retail chains had earlier asked the government not to throw open the sector for foreign investment till Indian retailers equipped themselves to take on competition.
NABARD Executive Director R Balakrishnan emphasised on importance of efficient supply chain management and said, "the profitability of entire chain is important today for success of any business".
Speaking on the changing face of Indian Trade under the WTO regime, Economic Laws Practice Advocates and Solicitor Partner Rohan Shah pointed out how Indian textile exports increased to 25 per cent after quota dismantling.
He said there is parallel world of trade growing side of WTO talks wherein the neighbouring countries are entering into agreements for trade facilitation which is the ultimate objective of the WTO.
First Published: Jan 20, 2006 18:24 IST