Kolkata, Feb 4 (Calcutta Tube / IBNS): Foreign direct investment (FDI) in India’s retail sector is unlikely to hamper the country’s growth or its farmers the deputy chairman of the country’s Planning Commission Montek Singh Ahluwalia said here on Friday.
The influential commission has long backed foreign investment in India’s largely closed retail sector which currently allows only 51 percent of FDI single-brand retail and none in the mult-brand category.
“Modernisation of agricultural marketing is very necessary. I think allowing FDI in the retail sector is a good idea,” said Ahluwalia.
He said squeezing the intermediary forces was crucial to bring down prices for consumers and raise profits for farmers. Allowing FDI in the retail sector could only stiffen competition in agriculture marketing tightening margins for the middleman.
“We should encourage FDI in the retail sector. I don’t think it will be damaging in any way,” he said, calling for a “drastic” amendment to the India’s Agricultural Produce Market Committee (APMC) Act.