The Shopping Centres Association of India (SCAI) has welcomed the Indian government’s move on FDI in multi-brand and single brand retail.
Commenting on the move, S Raghunandan, Chairman of Shopping Centres Association of India, said: “We see a huge upside and welcome the government’s move to liberalize 51 percent FDI in multi-brand and 100 percent in single brand retail. The impact will be felt on large number of single brands who are yet to enter India, due to the large investment that will now pour into the country. The impact is also likely to be felt on other franchise- licensee relationships who may now want to convert to joint ventures. Multi-brand retail is not only present in the supermarket and hypermarket space; it also exists in fashion accessories and lifestyle retail. And, it is here that we will see a huge influx of new brands into India thanks to the FDI relaxation.”
Speaking about the shopping centre industry in India, Raghunandan said: “Organized retail is at a very nascent stage in India and the shopping center industry is only seven to eight years old. It is only now that we are seeing more and more shopping centers across the country, which are getting larger in size. In order to keep pace with the development of larger shopping centers, we need variety and large number of brands. This is where the FDI can have a direct impact and help us in developing quality shopping centers.”
He further added that organized retail constitutes a very small portion of the Indian retail industry. With the opening of FDI, many foreign retailers will enter the country. It will also lead to the creation of large employment opportunities in retail.
“The consumer will have a wider variety of brands and categories to choose from, which so far have been very limited. Overall, this move will lead to a much larger consumer choice as well as better quality and standards creating a new benchmark in the retail and shopping center industry, " he added.
SCAI, a non-profit organization, has been set-up to encourage the development of the shopping center industry in India.
-IndiaRetailing Bureau
