News: 'MNCs in Indian retail will help consumers'

(PTI 06/01/2007) New Delhi - In the midst of a raging debate over allowing multinationals in the retail sector, Infosys mentor N R Narayana Murthy today favoured MNCs in the sector saying consumers will benefit from their entry.

He also felt if Congress had a majority at the Centre, economic reforms would have moved at a much faster pace.

"When we have opened it (retail sector) to large Indian groups, which means that mom and pop stores are likely to suffer anyway, why not open it to large multinationals," Murthy told Karan Thapar on a CNN-IBN show Devil's Advocate.

When asked if he believes foreign direct investment should be permitted in the Indian retail sector, he said, "absolutely".

Murthy said MNCs would bring the best technology and practices, and the consumer benefits at the end of the day.

Talking on economic reforms, Murthy said: "I personally think we have one such leader with the vision, political capacity and courage to force through the change in Dr Manmohan Singh (but) unfortunately he leads a very fragile coalition. If he were to lead a majority Congress party government, I have no doubt at all he would have moved much much faster than he has been able to."