New Delhi, July 8 (KNN) The Modi-led government has been vocal about the importance of FDI (Foreign Direct Investment) and FII (Foreign Indirect Investment) and the new Budget for the year 2019-2020 is directly in accordance with this mindset, said Confederation of All India Traders (CAIT).

Praveen Khandelwal, Secretary General, CAIT (The Confederation of All India Traders), said “The Government in the Budget has announced some relaxations in FDI in Single Brand Retail which could be perhaps relaxation of 30% local sourcing norms which might attract more MNCs brand to come in India.”

He was hopeful as well as critical of this model underlining foreign investment and its implications.

The traders' body is of the view that if the Government intends to relax local sourcing norms, it should also simultaneously direct such MNCs to manufacture in India under the Make In India scheme and assert that such companies will export their products from India on a global scale.

It will be a win-win situation for everyone as India’s exports will increase substantially and the investing country will be able to earn substantial foreign,  it added.

Furthermore, Khandelwal warned the government of the complications of inviting foreign investments which he believed could have serious consequences for the domestic market.

"CAIT feels that it is a very sensitive matter having greater implications on domestic trade. The government should also create a mechanism under which it could be checked that MNCs should not be indulged into under-pricing or predatory pricing in order to control the market. There has to be a fair competition and even level playing field for all so that domestic traders and small Industries do not hurt," he stated.