New Delhi, Jan. 27: A Confederation of Indian Industry survey shows small and medium units by and large supporting 100 per cent FDI in single-brand retail.
According to the survey, the rule mandating 30 per cent sourcing from small and medium enterprises (SMEs) is beneficial for the sector.
"The government's decision of mandatory sourcing of a minimum of 30 per cent from Indian micro and small industry will help SMEs to achieve higher growth in sales, size of the industry, capacity addition, increased orders, qualitative improvements and branding of the products, technology upgradation, employment etc," the survey said.
According to the survey, mandatory sourcing will provide for the expansion of scales of production facilitating domestic value-addition in manufacturing. This will have a multiplier effect on employment, technology upgrade, income generation, demand and further investment.
The SMEs are also bullish about 51 per cent FDI in multi-brand retail.
"India's growing retail boom is a success story. Fifty-one per cent FDI in multi-brand retail and its early implementation would give a major boost to the all-round growth of organized retail in the country having substantial positive impact on the growth of SMEs," CII director-general Chandrajit Banerjee said.
The survey was based on a large sample size covering different categories of SMEs according to sales turnover.
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