Consultancy firms Jones Lang Lasalle and Cushman and Wakefield have expressed that the Government's move to allow 51 per cent FDI in multi-brand retail will have a positive impact on the economy and boost the overall business.

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 how this policy will be implemented due to the given caveats. However, it does signify a strong positive outlook for this sector, he said.

FDI will be a powerful catalyst to the required growth in the retail industry and, in long-term, will prove beneficial to all the major stakeholders, he felt.

The real estate retail industry will benefit immensely due to increase in demand and increased investor confidence.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield , said: “The Government’s decision to go ahead with pushing for 51 per cent FDI in multi-brand retail 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.’’

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.’’

>rishikumar.vundi@thehindu.co.in

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