Developers apex body CREDAI welcomed the Union Government’s multi-brand FDI policy facilitating 51% investment from abroad.
“This much awaited policy announcement is a move in the right direction as it will give a new fillip to the development of retail sector in the country.” Mr Lalit Kumar Jain, National President of CREDAI, said.
The government also opened up doors for development of logistics and infrastructure like cold storages in the rural areas which, Mr. Jain said, will help positively change the village economy.
At least 50 per cent of total FDI brought in shall be invested in ‘back-end infrastructure’ within three years of the induction of FDI. The back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infrastructure.
This is a praiseworthy move, he said as it will help ceat jobs across the country and thus check large scale migration of people from rural areas to urban centres in search of employment, he said and expressed that all right thinking people will wholeheartedly support the government initiative.
The overall policy will also contribute to the equitable distribution of employment, he said and pointed out: “India needs bold decisions to help the nation progress with new vigour and enthusiasm and we are happy that the government has at last began to move in the right direction.”