FDI in multi-brand retail to push growth: Goldman Sachs

One way of pushing GDP growth and dealing with high current account defecit, according to Goldman Sachs, is FDI in retail.

Tushar Poddar, Goldman Sachs India Managing Director and Chief Economist said, "Every 1.7 dollar of foreign investment can generate one dollar of GDP growth, which is the lowest amount, simply because it has so many different linkages as opposed to putting in an additional dollar in banking."

"There is very high current account deficit, so we need FDI, we need inflows," he added while recounting the benefits of FDI in retail.

However, the amount of FDI inflow would depend on factors such as the number of states that implement it as also the number of cities it is allowed in.

Earlier, government won the voting in Lok Sabha for the 51 per cent FDI in multi-brand retail with a comfortable margin.