The FDI Story
The Government has recently allowed 100% FDI in Single Brand Retail via the automatic route. Kashmira Mirza and Amanda D’Souza speak to the Stakeholders to know their views on this.
Exhibitors at the 66th NGF talk about the introduction of FDI in SBR
“I think the FDI in single brand retail is a very good step. A lot of international brands who would like to invest in India wouldn’t face any bottleneck of getting stuck with a local partner and won’t have to resort to local sourcing. They would, therefore, be able to function to their full potential. It gets healthy competition in the country. For brands like mine, which are not very local in taste, it works well. We’re not into small detailing. When consumers see that our products are similar in quality and taste to the international brands; yet priced at much more affordable rates, they will naturally gravitate towards our products. I would welcome this kind of healthy competition in the Indian market.”
ABHISHEK BARIYAR, Ricochet
“FDI in single brand retail would be challenging for players like us. If you look at a market like China, it has so many mechanisms in place to support its domestic businesses against foreign competition. Indian players don’t mind the competition, but we should also have solid infrastructure in place for garment hubs, and give local brands a platform that helps sustain our business. You’re putting us in competition with brands that have a legacy of 150 years and you’re not only asking us to compete with such entrants, but also keep paying taxes, keep empowering the nation, keep creating jobs – all without support. This is not possible without the infrastructure that allows for healthy competition. We have always been a labour oriented country, considered good for exports. Times are changing now, though, and we are being urged to export because our domestic market is currently huge. 100 per cent FDI will be tough on small players. If we had garment hubs and technological hubs that enabled direct sourcing, and events like the National Garment Fair were conducted more regularly and on a larger scale, Indian businesses would thrive. We could cut on a lot of middlemen in the process and create direct benefits for hardworking merchants.”
SHEKHAR MUKHERJI, King and I