Govt must also protect retail traders interests -
MCHI-CREDAI Chief Paras Gundecha
MUMBAI: Hailing the Union Government’s decision to allow FDI in organized retail sector as the right move, the developer community has called for accelerating the economic reforms process by covering the realty sector, too.
“India is the world’s second largest retail market and the re-launch of the reforms process with the FDI in the sector will definitely help revive the sluggish economy and generate employment,” said Mr. Paras Gundecha, President of MCHI-CREDAI.
As it is, the retail sector has established itself as the sunrise industry and with the FDI it will get a tremendous boost as it will lead to establishment of new chains providing newer outlets for farmers, traders and the industry as a whole, Mr Gundecha pointed out.
“We appeal to all sections to support this policy decision and help revive the economy without any more loss of time,” he said.
At the same time, Mr Gundecha said, the government should adopt a balanced approach on this and protect the interests of small retailers who are all self-employed people while allowing FDI in multi-brand retail. “We must ensure an overall development and progress and not just a particular section,” he said.
Mr Gundecha also welcomed the encouragement of FDI into logistics and storage chains in rural areas to cut down wastage of farm produce. This will lead to creation of new job opportunities around the farm sector, changing the rural landscape.
Stating that rapid urbanization is the reality of the day, Mr Gundecha said the real estate industry looks forward to tapping the vast opportunities in housing, retail and office segments.
“This is where the realty reforms come into picture as the retail chains will need huge complexes. For long, the growth of real estate industry has been thwarted by limitations of land availability, delays in approvals, expensive and almost prohibitive funding and ever increasing rise in costs inputs like cement, steel, sand and even labour,” he explained.
Mr Gundecha appealed to the government to take a serious look at the realty industry and extend the process of reforms to it by ensuring easily accessible funding, speed up approvals by setting up a single window system and accord the industry the status of infrastructure.
The capital and labour intensive construction industry contributes over 11% to the GDP, apart creating massive employment which in turn leads to rise in purchasing power. This in turn will have a cascading effect on the retail chains as well making the reform process truly meaningful, he said.
Mr Gundecha offered to open the process of dialogue with the government and its various agencies to work on realty reforms. “We are always willing to play a meaningful role in the nation’s economic development and work closely with the government for realizing the dreams of housing for all,” Mr Gundecha added.