FDI to stay out of Indian retail market

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{image-fdi+indtra_15032008.jpg www.oneindia.com}New Delhi, Mar 14:The Government today clarified that there is no proposal to allow Foreign Direct Investment (FDI) in the retail sector, saying it wants to protect the interest of small retailers. Replying to a question in the Rajya Sabha, Consumer Affairs, Food and Public Distribution Minister Sharad Pawar said only Indian corporates had ventured in the retail sector.

''The retailers/traders register their shops with the authorities concerned in various states, there is no restriction on the entry of any domestic investor into the retail sector,'' he responded to the question whether the Government had lately reviewed its policy on permitting big retail corporates to expand into retail market. About FDI, he clarified that as per the extant policy, the Government allows 100 per cent FDI in cash and carry through the automatic route and 51 per cent in single brand.

The Minister said the department of Industrial Policy and Promotion has sanctioned a study ''The impact of organised Retailing on the unorganised Retail sector'' to be carried out by International Council for Research on International Economic Relations (ICRIER), which was to submit its report in July 2007.

But, it has sought more time for additional survey. ''The study will cover effects on organised retailing on small retailers and vendors in the unorganised sector keeping in mind the likely growth in the overall market and effect on employment,'' he added.

Informing the House that the final study report of NCAER will be submitted by May 2008, Mr Pawar said the study will enable the Government to take a view on the need to have a policy on organised retail sector. He assured the House that the interest of small retailers will be protected.

UNI

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