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There is no question
of allowing foreign direct investment (FDI) in
retail if it adversely affects the small retailers
in the country, Shri Kamal Nath, Minister of
Commerce and Industry, said at a meeting with the
Confederation of All India Traders when a 12-member
delegation of the Confederation called on the
Minister to launch the All India Traders’ Day here
today. Reiterating the government’s commitment to
ensure employment generation, Shri Kamal Nath said
he would look at only such models where there would
be no displacement of the small players in the
retail sector.
As of now, there is no
policy for FDI in retail. The government had ensured
suitable safeguards against adverse impact on small
traders by allowing FDI only in retail of “Single
Brand” products, the Minister said, adding that the
main concern was not foreign vs, domestic, but big
vs the small. The issue was not just about buying
and selling but also about access to technology,
backward linkages etc. especially in sectors like
food processing so as to reduce wastage of fruits
and vegetables and ensure better returns to the
farmers for their produce, he explained. “I have not
yet found the right model (for retail)”, he said.
The delegation, which
was led by Shri Praveen Khandelwal, Secretary
General of the Confederation, presented a paper on
core domestic trade issues to Shri Kamal Nath, which
calls for abrogation/amendment of outdated laws and
regulations; simplification and rationalisation of
the tax structure including merger of all commercial
taxes on domestic trade into a single tax and
abolition of the central sales tax; better banking
facilities for traders; formation of a Ministry of
Internal Trade at both the central and state levels
and protection to domestic trade from foreign direct
investment.
The Confederation has decided to
celebrate the 9th of August every year as the
Traders’ Day.
New Delhi,
Aug
9, 2006 |
