The United States has welcomed the decision of the Indian Parliament to allow FDI in multi-brand retail. The State Department spokesman, Mark Toner, told reporters at his daily news conference in Washington that this is a win-win for all from small businesses to farmers and consumers, besides deepening economic co-operation between the two countries. He said, direct foreign investment in retail will grow markets in India as it has in China, Brazil and many other developing economies. Mr. Toner said, a number of US firms are keen to invest in the retail sector of India.

In a statement, the US-India Business Council (USIBC) said, this will usher in much needed investments and expertise into supply chain development. It can more efficiently link farmers directly to markets, thus minimising loss due to inadequate storage and transportation facilities.