FDI in multi-brand retail a boon for small firms: Vayalar Ravi | SupportBiz

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FDI in multi-brand retail a boon for small firms: Vayalar Ravi

 
Foreign direct investment in multi-brand retail could help small to midsize companies in India, Asia’s third largest economy, beat the slowdown, said MSME minister Vayalar Ravi.

India’s industrial output struggled to grow in July, according to government data. Output at factories, mines and utilities grew 0.1 percent in the span of a year, according to news reports.

Small to midsize companies stand to benefit with the government's decision to allow foreign direct investments in multi-brand retail because “it will help (local) industries sell their products,” said the minister, on Saturday, in Bangalore.

Across rural India, farmers stand to benefit when retail firms set up cold storage facilities and warehousing facilities, Ravi said.

A labour crunch in India's industrial units is forcing entrepreneurs to invest in new machines. Small to midsize enterprises should make effective use of both modern technology and the country's work force to grow their businesses, the minister said.

"Anybody is free to adopt new technologies and (the Ministry of Micro, Small and Medium Enterprises ) will help them," said the minister.

But technology cannot entirely replace skilled workforce in the small scale sector, cautioned the minister. He urged industry to take to the right technologies and refrain from hopping on to the technology bandwagon in a hurry.