Exhibit-I.II (a)
Exhibit-I.II (b)
Research studies have revealed that the states of
Delhi, Maharashtra, Andhra Pradesh, Gujarat and
Tamil Nadu have the highest penetration of modern
retail outlets. It is further interesting to find that
significant percentage of modern retail outlets is
existing in various non-FDI compliant states
(Exhibit-I.III)
The
Economic Challenger
No
15
Issue
58
If the present scenario regarding FDI in
retailing is looked at, it is observed that while the
various political parties and political personalities
are rubbishing the claims being made by the
Congress led UPA government at the centre, the
government is determined to go ahead with
implementation of the FDI proposal for multi-brand
retail. In this context, it has been found to publish
advertisements in various newspapers and in
various other mass media vehicles stating the
benefits of enhanced FDI in multi-brand retail. The
advertisements talk of benefit to farmers due to 50%
investment by retail chains in the development of
back-end infrastructure. The ads further state that
FDI in retail will help in the creation of lakhs of jobs
and will also serve the greater interests of the
customers. However political parties like the BJP
and BSP have alleged that the Congress
government at the centre is trying to introduce videsi
sentiments by and large.
Indian multi-brand retailers have been found
to be quite enthused with the idea of 51% FDI in
multi-brand retail and there are many who have
expressed their thoughts about splitting their
businesses to induct foreign partners in the states
where FDI policy is being encouraged. Sanjiv
Goenka of the RP Sanjiv Goenka Group has been
one such personality who is toying with the idea.
However one concern that faces him is that some
60% of his outlets are in the 11 states where FDI
policy has been opposed. People at Future Group
also have seen merit in the idea of clubbing retail
stores and other assets located in states favoring
FDI where a foreign company can pick up equity.
Rajiv Luthra of Luthra & Luthra law firm mentions,
"A new foreign retailer can always forge an
agreement in a way where the Indian partner opens
stores in states opposed to this decision while the
joint venture opens in states not opposed to it. Once
January-March
2013
6