U.S.-India Business Council (USIBC) today applauded the Indian Parliament’s passage of allowing 51% foreign direct investment in the country’s multi-brand retail sector.
The new law will usher in much needed investments and expertise into supply chain development that can more efficiently link farmers directly to markets, thus minimizing loss due to inadequate storage and transportation facilities.
“We thank the UPA government and supporting parties for working together to pass this important bill. It will modernize India’s retail sector and reign in high levels of inflation,” said Ron Somers, USIBC President. “FDI in multi-brand retail will support the government’s goal of achieving remunerative prices for farmers, and will also increase quality and choice for India’s increasingly sophisticated consumer base.”
Recognizing that it will be up to individual states to implement this big bang reform, USIBC is keen to work with progressive state governments including Uttar Pradesh, Gujarat, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Punjab, and Bihar, and in 2013, will lead many of its 350 member companies to visit these states.
The U.S.-India Business Council (USIBC) is the premier business advocacy organization formed by the U.S. and Indian governments in 1975 whose purpose is to deepen two-way trade and strengthen commercial ties. Today, USIBC is comprised of 350 top-tier U.S. and Indian companies. Ajay Banga serves as Chairman of USIBC’s Board of Directors. Mr. Banga is President & CEO of MasterCard Worldwide.