Govt. Evolving Consensus on FDI in Multi-Brand Retail: FM.

The government is committed to reforms for consolidating economic strengths and is actively evolving a consensus to allow foreign direct investments in multi-brand retailing, Finance Minister Pranab Mukherjee said today.
 
``We have liberalized FDI in single brand retail, and a consensus for operationalising the decision taken to open FDI in multi-brand retail trading is being pursued,`` he said while addressing 91st annual session of the Associated Chambers of Commerce and Industry of India (Assocham).
 
Mukherjee said the government has for the first time allowed individual foreign investors other than institutional investors and foreign venture capital firms to invest directly in Indian capital markets. FDI inflows which had slowed down considerably in 2010-11 have now bounced back and FII inflows have also picked up, he said while addressing the session `Making Inclusive Transformation Happen: Reinventing the Growth Track Through Innovation and Entrepreneurship.`
 
The finance minister said the continuing global uncertainty is affecting India and increased volatility in capital flows is resulting in heightened fluctuations in stock and currency markets with attendant implications for investor confidence. Slowdown in external demand has led to deceleration in growth of exports during recent months, leading to widening of current account deficit.
 
``Yet India is still among the global front-runners in the growth field. The Indian economy is better placed than many other nations to withstand a fresh round of global economic turmoil,`` said Mukherjee.
 
India`s resilience results from the fact that bulk of the near double digit GDP is domestic demand driven. The external commercial borrowings policy has been successful in maintaining external debt at sustainable levels.
 
At the same time, the banking sector is robust. ``There is unwavering commitment to reforms to further consolidate our economic strengths,`` he said adding industry leaders and policy makers need to focus on three areas for equitable growth education and knowledge creation, creating and strengthening a competitive environment to support private enterprise, and encourage greater focus on research and design activities in enterprises and institutions of higher learning.
 
Meanwhile, minister for corporate affairs Veerappa Moily stressed on the need to inculcate capital literacy amid people to ensure prosperity and untap the country`s growth potential.
 
He also reiterated that the government is not making the spending on corporate social responsibility (CSR) mandatory in the new Companies Bill.
 
Assocham new president Rajkumar Dhoot said the industry is eagerly looking forward to second generation of economic reforms. ``More focus needs to be given to infrastructure. For sustained growth, the manufacturing sector needs to be incentivised by increased depreciation to take benefit of new technology and investment allowance. At the same time, the industry expects fiscal consolidation, widening of financial markets, steps towards Goods and Services Tax, and encouragement of FDI by policy liberalisation.``
 
Assocham outgoing president Dilip Modi said the government and industry should encourage new young entrepreneurs to enter sectors with significant social impact like agriculture, education, renewable energy, bio-technology and water management. ``There is a dire need to build innovative quality solutions in such sectors and a competitive entrepreneurial ecosystem created in each of these sectors will help unleash innovative solutions.``
 
``The chamber has been working closely with the government on issues ranging from building awareness on need for key reforms in taxation and FDI in agriculture, education and broadband as three pillars of our long-term national development agenda to strengthen cluster development programmes across states and address key issues around infrastructure financing.``

Source : myiris.com