FDI in multi-brand retail will boost competition: CCI

Notwithstanding strong opposition from allies of UPA government on its decision allowing foreign direct investments (FDI) in multi-brand retail, the Competition Commission of India (CCI) chairman Ashok Chawla pointed out that the entry of big players in the retail market would trigger competition, ensuring innovative and much cheaper products with better quality. He also suggested that the retail sector in India has to be regulated with no special dynamics like any other sector.

UPA ally Trinamool Congress had withdrawn support to the government opposing its decision allowing 51% FDI in multi-brand retail, while other political parties including opposition BJP and Left parties also expressed its strong protest by stamping it as anti-people decision by pointing that it would affect business of small retailers. However, the industry has welcomed the reform and hopes that it would be a huge mood lifter and also expects that it would benefit all stakeholders -farmers, small manufacturers as well as customers.

The Consumer organization CUTS Secretary General Pradeep Mehta opined that there is less room for anti-competitive practices of predatory pricing and abuse of dominance by big retail players due to low entry barriers for un-organized retail. Global retail giants - Walmart and Carrefour which have been approaching government with high interest to FDI in multi-brand retail, would now be allowed to up to 51% to open stores in 10 states and UTs in India. US-based Walmart has expressed its hopes to open its first store within 18 months.

Competition Commission of India (CCI) is a statutory body of Government of India responsible to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.