U.S. Diplomat Backs India's FDI in Retail Decision

Wednesday, 30 November 2011, 04:12 Hrs
Printer Print Email Email

Chandigarh: A U.S. diplomat backed the Indian government's decision to allow 51 percent Foreign Direct Investment (FDI) in multi-brand retail, saying it 'makes sense' and will help bring down prices.

Charge d'affaires of the U.S. Mission Peter Burleigh, who was here to interact with participants of a Rotary Club event, noted that the fears, in several major economies such as China, that allowing FDI will 'badly impact' small traders in villages and towns had 'turned out to be not true' and the apprehensions 'not real'.

Backing the Indian government's decision, he said FDI in retail will help in bringing down prices of goods for the consumers but also provide 'good, stable' prices for the farmers for their produce.

But he added that the decision was purely of the Indian government, political parties and the people to make.

'On FDI in retail, very important economies, including China, are concerned that small traders in the villages and towns will be badly impacted, that they will not be competitive. But that has turned out not to be true, broadly speaking. I think that is an obvious concern, but I don't think it's actually real,' Burleigh said.

'If FDI are increased here by 51 percent or whatever it is, I don't think that we will see a difference or change with regard to the small 'kiranas' that exist all over the country,' he said.

'I think the record is very clear in countries that have gone in that direction... that prices for consumers will go down and you will have good, stable prices for farmers also over time,' he added.

Burleigh said the foreign companies would make 'guaranteed purchases' for several years and also pay a stable price for farmers' produce, even when prices in the global market fluctuated.

'This is obviously a decision for the Government of India, political parties and the people of India to make. But I think, both in the interest of the farmers and consumers, that this makes sense.'

Source: IANS
Startup City
India Accelerator, a GAN partnered, mentorship-driven, acceleration program hosted ‘The Inner Ci..
Chipset-making giant Qualcomm has listed chipsets such as Snapdragon 855, 845, 710, 675 and 67..
First things first. "Made In Heaven" is the sexiest webseries India has produced, no doubt about i..
IIT Roorkee organized an MoU exchanging ceremony between the Govt. of India Department of Scie..
US Indian
An Indian-American teenager has been conferred with the 2019 National STEM (Science, Technolog..
Facebook ruled out a cyber attack on its products Whatsapp, Instagram and Messenger, which suffere..
Enterprise IT
PayByPhone, the global leader in mobile parking payments, today announced that it will appoint And..
The Department of Telecommunications (DoT) in consultation with the Finance Ministry plans to spli..
Hinduja Global Solutions here on Monday said it has set up a centre of excellence to train disable..