According to a new survey conducted by the Confederation of Indian Industry (CII), the small and medium enterprises (SME) sector in the country is in favor of allowing Foreign Direct Investment (FDI) in single band retail in the country.

The survey showed that most SMEs believe that the entry of foreign players would be beneficial to them in the long term. About two-thirds of small and medium companies from across India see the entry of foreign players as an opportunity. On the other hand, only about 21 per cent said that it would threaten their business.

The survey also found that about 98% believe that the allowing foreign companies would boost the sales of their products significantly in the country. Out of these, about 21 per cent said that the impact on sales would be excellent and could be about 20 per cent.

Overall, most of the companies believed that their size would grow with the entry of foreign capital in the industry.

The central government had announced its decision to allow foreign direct investment in both single and multi-brand retailing in the country in the country. The move sparked huge protests from the opposition parties and traders and the government was forced to put of the decision. However, many ministers have said that the decision is not scrapped and the government needs time to build consensus on the issue before implementing the decision.