Consultancy firms Jones Lang Lasalle and Cushman and Wakefield have expressed that the Government move to allow 51 per cent FDI in multi-brand retail will attract investments and change retail landscape.
Pankaj Renjhen, Managing Director-Retail Services, Jones Lang LaSalle India, said, “The decision is a big step towards strengthening organised retail. The new regulations are going to change the retail landscape.”
The Government has opened a gateway for foreign funding into the sector. There are still some apprehensions on its implementation due to caveats. However, it does signify a strong positive outlook for this sector, he said.
The FDI will be a powerful catalyst for the growth of retail. In the long term, this will prove beneficial to all the major stakeholders, he felt.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, said: “The Government’s decision is a much-awaited and much-needed initiative. In a period when we are learning only about poor economic performance on various fronts, this decision will boost overall sentiment and the economy.”
In a statement, he said, “Within the next 12-24 months, international retailers will accelerate their entry strategy. The developers involved in shopping centre development, who were badly hit since 2008, will also get a tremendous boost,” he said.
Dutt further said, “We will witness serious players expanding in this space. Over the medium to long term, the retail sector, real estate industry and the end-consumers will benefit from the move and the economy on the whole will gain momentum, depth and size.”