As a result of economic recession, there is a need to amend the FDI by the government so as to make the flow of funds easy into the retail sector. As per a source from www.propertykhazana.com, the FDI rules are restrictive norms and as such it should be more accessible so that the flow of funds would be made easy for this sector thereby encouraging a stiff contest.
Currently around 100% FDI is permitted in bulk sales in contrast to 51% being permitted in single retailing whereas no permit is given in dual brand retailing. But a report from Parliamentary Committee on Commerce stated that it is opposed to starting of new retail sector in the coming year for FDI. Sources from www.propertykhazana.com states that a report from the Indian Council of Research in International Economic Relation (ICRIER) in 2008 expressed that by easing FDI norms, the sector might see an uptrend by $590 billion by 2011-12 where planned retail would have 16%.
At present the share of the planned retail is very minimal in the whole market and can expect a growth. For further details refer to www.propertykhazana.com.
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