The U. S. has welcomed Indian Parliament's decision to allow foreign direct investment (FDI) in multi-brand retail, saying it will create a win-win situation for all.

Mark Toner, the State Department spokesperson, FDI in multi-brand retail would boost investment in infrastructure; create opportunities for small businesses and farmers; and also benefit consumers by lowering prices.

Speaking to reporters at a news conference on Friday, Mr. Toner said, "We welcome the Indian Parliament's decision . FDI can create opportunities for small businesses, for farmers, spur investment in infrastructure and bring benefits to consumers as well as lower food prices."

Toner added that the decision would also deepen economic co-operation between India and the U. S. he said direct foreign investment in the retail sector would grow markets in India as it did in other developing countries, such as China and Brazil.

The US-India Business Council (USIBC) has also applauded the Parliament's decision to allow up to 51 per cent FDI in the country's multi-brand retail sector.

However, the union government of India has left it up to individual states to implement or not to implement the decision. Thus, many of USIBC's 350 member companies are now eager to persuade governments of progressive states like Gujarat, Uttar Pradesh, Punjab, Maharashtra, Karnataka, Bihar, Tamil Nadu and Andhra Pradesh, to allow them to set up their retail stores.