Big establishments welcomed the Karnataka government’s node to allow foreign Multi-brand retail to start operations in the state, but small businesses intricate by the move expressed cited there objection over the decision, indicated they may protest the move.
Further, there isn’t any rush for the foreign retail apparently in the state. Moreover none of the Multi brand retails have applied to The Central government for starting operations in India, without much clarity over the stringent policies to be followed set by the government has hampered the interest of the big Brands into entering the Indian market. The Bangalore Chamber of Industry and Commerce (BCIC), which comprises of big corporates, have shown a positive vibe over the state government’s decision, quoting it to be “a path breaking move”.
This move by the Karnataka state government could possibly improve the retail trend while creating a lot of employment opportunities. Which could strongly be a driving force for the state’s economic growth and improve end consumers interest said M Lakshmi Narayan, president of BCIC and MD of global audio major Harman International India.
H V Harish, senior VP at BCIC, also cited that government’s decision would give a boost to the agriculture and horticultural sector and also bring a boom into the real estate sector .
The Federation of Karnataka Chambers of Commerce & Industry (FKCCI), been a local industry body that represents small and medium business. All this while they have been opposing, the transition of big brands into India through the multi-brand retail model. The organization said it did not want to make a comment based on media reports about the Karnataka government’s change in position on the matter. “We would be meeting the chief minister. After we speak with him and understand the government’s position, we will share our views,” said K Shiva Shanmugam, president of FKCCI.
Not all have welcomed the decision with big heart, The Karnataka government’s decision have also faced a lot of opposition by many organizations, One such organization that have been most vociferously opposed to foreign retailers has been the Bangalore Wholesale, Food Grain, and Pulses Merchants Association. The members of the organization mostly operate out of the APMC yards. The opposition by the organization is not the first one, previously when German wholesaler Metro Cash & Carry entered Bangalore, the association had virulently opposed it, this made Karnataka government to strictly impose guidelines on the way Metro operated
Source: The Times of India, Bangalore