'FDI norms in retail sector should be relaxed'

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New Delhi: The Government needs to relax norms on foreign direct investment in retail to facilitate fresh infusion of funds and also promote competition in the sector, which has been hit by the economic slowdown, real estate consultant CB Richard Ellis has said.

"The existing FDI rules are a constraint. There is need to open up the sector a bit more as it will facilitate fresh infusion of funds and also promote competition," CB Richard Ellis (CBRE) Chairman and MD (South Asia) Anshuman Magazine said.

Currently, 100 per cent FDI is allowed in wholesale cash-and-carry business, while in single-brand retailing 51 per cent FDI is allowed but none in multi-brand retailing.

The Parliamentary Committee on Commerce had earlier this year submitted a report opposing further opening up of the retail sector for FDI.

However, a report by the Indian Council of Research in International Economic Relation (ICRIER) in 2008, had mooted liberal FDI norms in the sector saying the sector would grow to USD 590 billion by 2011-12, of which organised retail would have a share of 16 per cent.