The Hindu Business Line : CII North supports foreign direct investment in retail

India badly needs private investment in retail. These investments are needed from both Indian and foreign sources, but should initially be restricted to the wholesale segment, said the Confederation of Indian Industry (CII) Northern Region Chairman, Mr Harpal Singh.

“The current policy to permit private investment in wholesale will clean up the supply chain, but being cautious in frontline retail is a good idea before we get to stage two,” said Mr Singh while speaking to Business Line.

Referring to the newly opened Bharti-Walmart ‘cash and carry’ outlet in Amritsar, he said that private players have more access to investment and, hence, can maintain good storage and refrigeration systems required to store perishable items.

Moreover, they can provide access to products from distant markets, such as fish from South India and fruits from other countries, he said. The CII was looking to “create a mechanism for integrative development” for the northern States, he said.

Awareness programmes

“The chamber will be running awareness programmes towards the introduction of the proposed goods and services Tax,” he said. This is to help the local industry adapt to the new tax structure.

Mr Singh said that the CII, with its focus on the development of physical infrastructure, will help the north develop itself into one single market. “The CII has created special facilitation cell for the recession-hit MSMEs, to help them find new markets. The cell will also help them find institutional funding,” he said.

Among other things, Mr Singh mentioned that the education system in the country has a “dramatic gap as compared to the West”.

“The cost has gone up ten fold over the 11th Plan and while we currently spend about $20 billion on education, we need to still spend about $50 billion annually,” he said. The education system is challenged with problems of both capacity and quality, he added.

More Stories on : Industry Associations | Foreign Direct Investment | Retailing

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