Captains of industry on Wednesday welcomed the approval accorded by the Lok Sabha to foreign direct investment (FD)I in multi-brand retail, saying that this will send a strong signal to foreign investors and enable the government to take up further economic reforms.
'It is a welcome development. We fully support the government on the issue. The country needs to move forward. We need to send a strong signal to foreign investors,' said Ficci President R V Kanoria.
Expressing similar sentiments, CII Director-General Chabdrajeet Banerjee said, 'It is an important thing. It will boost the government's confidence to implement key economic reforms. This move would definitely help the government in passing the other important and pending reform measures very quickly.'
The Retailers Association of India too hailed the development, saying that it is 'a big positive step'. 'This is one more step towards encouraging those who have been sitting on the fence to invest in India,' noted Retailers Association of India CEO Kumar Rajagopalan.
He, however, added that there are other issues, like not all states allowing FDI in multi-brand retail, which need to be resolved for more foreign investments to come into the sector.
Pantaloon Retail India Joint Managing Director (JMD) Rakesh Biyani said, 'This is a welcome development and we hope that the policy will be implemented soon. FDI will be good for the Indian retail sector.'
The move to allow FDI in multi-brand retail got the approval of the Lok Sabha as the Opposition motion seeking immediate withdrawal of the decision was rejected convincingly, with the BSP and SP walking out.
While 218 voted in favour of the Opposition motion, 253 voted against it in the House where 471 members participated in the voting. The total strength of the House is 545.
Assocham President Rajkumar Dhoot said that the multi-brand retail FDI move 'would become a milestone in the economic reforms saga. The economy in particular and the nation as a whole will derive lot of benefit from this move.'
The immediate effect would be a spike in the inflow of much-needed foreign investment in India, he observed.
RETAIL SCRIPS JUMP 7%
Retail stocks, led by Shoppers Stop, today surged up to 7 per cent on optimism that the government would succeed in getting Parliament approval to its decision to allow foreign investment in the sector.Shares of Shoppers Stop climbed 7.28 per cent to settle at Rs 463.65 on the BSE. Trent, promoted by the Tata group, gained 4.25 per cent, while shares of Pantaloon Retail rose by 3.32 per cent.Among others, Provogue India soared 6.15 per cent while Koutons Retail India was up 4.97 per cent.
DOLLAR INFLOW HOPES PUSH` UP 14 PAISE
The rupee appreciated for the second straight day to close 14 paise higher at 54.54 to the dollar on optimism that the government would get Parliamentary approval for FDI in multi-brand retail, leading to big inflow of dollars. Persistent overseas investments in stocks and sustained dollar sales also aided the rupee rise.
At the Interbank Foreign Exchange market, the rupee commenced higher at 54.60 per dollar from last close of 54.68. FIIs pumped in nearly Rs 880 crore in stocks on Wednesday as per provisional stock exchange data, helping the rupee rise. India may get inflows of $3 billion-5 billion over the next two years, said traders.
'It is a welcome development. We fully support the government on the issue. The country needs to move forward. We need to send a strong signal to foreign investors,' said Ficci President R V Kanoria.
Expressing similar sentiments, CII Director-General Chabdrajeet Banerjee said, 'It is an important thing. It will boost the government's confidence to implement key economic reforms. This move would definitely help the government in passing the other important and pending reform measures very quickly.'
The Retailers Association of India too hailed the development, saying that it is 'a big positive step'. 'This is one more step towards encouraging those who have been sitting on the fence to invest in India,' noted Retailers Association of India CEO Kumar Rajagopalan.
He, however, added that there are other issues, like not all states allowing FDI in multi-brand retail, which need to be resolved for more foreign investments to come into the sector.
Pantaloon Retail India Joint Managing Director (JMD) Rakesh Biyani said, 'This is a welcome development and we hope that the policy will be implemented soon. FDI will be good for the Indian retail sector.'
The move to allow FDI in multi-brand retail got the approval of the Lok Sabha as the Opposition motion seeking immediate withdrawal of the decision was rejected convincingly, with the BSP and SP walking out.
While 218 voted in favour of the Opposition motion, 253 voted against it in the House where 471 members participated in the voting. The total strength of the House is 545.
Assocham President Rajkumar Dhoot said that the multi-brand retail FDI move 'would become a milestone in the economic reforms saga. The economy in particular and the nation as a whole will derive lot of benefit from this move.'
The immediate effect would be a spike in the inflow of much-needed foreign investment in India, he observed.
RETAIL SCRIPS JUMP 7%
Retail stocks, led by Shoppers Stop, today surged up to 7 per cent on optimism that the government would succeed in getting Parliament approval to its decision to allow foreign investment in the sector.Shares of Shoppers Stop climbed 7.28 per cent to settle at Rs 463.65 on the BSE. Trent, promoted by the Tata group, gained 4.25 per cent, while shares of Pantaloon Retail rose by 3.32 per cent.Among others, Provogue India soared 6.15 per cent while Koutons Retail India was up 4.97 per cent.
DOLLAR INFLOW HOPES PUSH` UP 14 PAISE
The rupee appreciated for the second straight day to close 14 paise higher at 54.54 to the dollar on optimism that the government would get Parliamentary approval for FDI in multi-brand retail, leading to big inflow of dollars. Persistent overseas investments in stocks and sustained dollar sales also aided the rupee rise.
At the Interbank Foreign Exchange market, the rupee commenced higher at 54.60 per dollar from last close of 54.68. FIIs pumped in nearly Rs 880 crore in stocks on Wednesday as per provisional stock exchange data, helping the rupee rise. India may get inflows of $3 billion-5 billion over the next two years, said traders.