The Confederation of Indian Textile Industry (CITI) has welcomed the Government decision to allow 51 per cent foreign investment in multi brand retailing.
In a press release, Mr. S.V. Arumugam, CITI Chairman, has thanked Mr. Anand Sharma, Minister of Commerce, Industry and Textiles, for his tireless efforts to get this important economic reform through, in spite of severe opposition from several quarters, and stated that the decision would encourage organised retailing, which in turn would result in more centralised procurement operations, improved supply chain management and reduced involvement of middlemen between producers and retailers. While producers, including farmers, would get higher remuneration, consumers would get the finished products at more competitive prices with the elimination of exploitation by middlemen.
Mr. Arumugam has further stated that all over the world, textiles business depended heavily on organised retailing for efficient distribution systems and supply of garments and home textiles to consumers at low cost. In India, fabrics are also a major retail item. Economies of scale in both procurement and distribution would reduce the cost for business and prices for consumers, especially for textile products which are the basic needs of the masses. This would also push up consumption to the benefit of the economy as a whole.
Mr. Arumugam hopes that the necessary measures for implementing the decision would be taken soon by the Government.