New Delhi, Feb 22 (UNI) All necessary safeguards will be taken by the Government, before India's retail sector opens up to the overseas multiple brand business, in order to minimise its impact on domestic retailers, a government official said today.
''Though single branded retail has opened to MNCs, the government is currently weighing all the pros and cons before a policy decision is taken to open up multiple brand retail business to foreigners''.
Industrial Policy&Promotion Secretary A K Dua said, while inaugurating a National Seminar on 'Shifting Paradigm in Retail Management' jointly organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and NIS Sparta.
Dr Dua said ''the government will ensure that the entry of global retail giants into India does not displace the existing employment in the retail business.'' While informing that the opening up of retail to MNCs could be subjected to multiple conditions, Dr Dua said the government was working on a model for retail opening that does not displace the organised retailers or their competitors in Kiranawalas.
Dr Dua clarified that if the Union Government takes a policy decision for opening retail, all the apprehensions that are being expressed against the entry of MNCs into retail would be adequately addressed.
AITUC Deputy General Secretary H Mahadevan, while opposing any policy decision that aims at opening up of retail to MNCs, said trade unions did not oppose FDIs but the opening up of retail to MNCs would have dangerous consequences.
According to him, the opening will lead to massive unemployment and remove those that are already there in the organised and unorganisd retailing.
ASSOCHAM President Anil K Agarwal, countering his view said opening up of retail would pay off high dividends and enrich the Indian economy and players involved in it.
''The paradigm shift in the retail sector could be seen as the turning point for all stakeholders in the industry, government, and the consumer to collaborate and create a professional India providing the best value for its people across all levels and segments,'' NIS Sparta Ltd CEO&MD and ASSOCHAM Retail Committee Co-Chairman Sanjeev Duggal said.
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