KOCHI: The Confederation of Indian Industry (CII) has said that the decision to invite Foreign Direct Investment (FDI) in the retail sector would greatly improve investment in the country. CII president B Muthuraman said that the FDI in the retail sector would go a long way in boosting trade at a time when declining investments had led to slower GDP growth. He noted that FDI in multi-brand retail would give a boost to the organised retail sector, positively impacting several stakeholders including farmers, consumers, MSMEs and hence, the overall economy.A study has said that the opening up of FDI in retail could increase the organized retail market size to 260 billion dollars by 2020, a release said here. It said that this would result in an aggregate increase in income of 35 to 45 billion dollars per year for all producers combined, three to four million new direct jobs and around four to six million new indirect jobs in the logistics space, contract labour and repackaging centres, housekeeping and security staff in the stores. It said that the government would also gain in ways of tax collection and reduction of tax slippages.The CII also pointed out that there was a need for a new level of efficiency in the retail chain that would bring higher values to the farmers, create millions of jobs in the organised sector and lower prices for the consumer.It further said investments, that would flow in agriculture back end and supply chain, would ensure food security through curbing wastages and improving quality for the future generation. It would also lower prices for consumers which could help in curbing inflation.The CII also said that in the current globalised scenario, overseas companies have been strong participants in the India growth story.
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