Pitching for increased foreign direct investment in multi brand retail sector, global management consulting firm Deloitte has said that the move would expand the share of organised retail in the country, thus contributing towards consumption-led growth of the economy.
In its latest thought leadership publication titled, Retail FDI in India, Deloitte has highlighted the growing relevance of foreign direct investment (FDI) and the government’s openness on FDI in retail trade in the country.
According to the publication, the FDI-led expansion of retail would not only boost consumption but would also provide the country’s mom-and-pop stores access to latest technologies that would form key to further growth of the sector. About 70 per cent of Kirana stores in big cities and 37 per cent of Kirana stores in tier II cities want to enable themselves with new technology. Availability of latest tools brought by global entities would thus help local businesses as well.
Retail trading witnessed a year-on-year increase of 98 per cent in FDI inflows in FY19. The foreign investments increased from $224 million in FY18 to $443 million in FY19.
