CAIT demands parliamentary body on retail trade

New Delhi, Aug 14 (UNI) The Confederation of All India Traders (CAIT) today urged the Prime Minister to constitute a Parliamentary Committee to look into all issues arising out of entry of corporate retailers into retail trade in India.

It should also dwell on the objections raised by traders, hawkers, trade unions, political parties and other sections of people, said CAIT Secretary General Praveen Khandelwal in a statement here.

He said Indian retail accounts for around ten per cent of the GDP with more than five crore retail outlets throughout the country excluding low cost kiosks and push cart vendors.

The country has the highest density of retail outlets in the world --for 1000 persons there are 15 retail outlets in India, he pointed out.

The overall size of retail market in India at present is estimated at Rs 15 lakh crores, in which more than five crores people are directly involved with 20 crores dependants on them for their livelihood.

About three per cent of the retail trade is in the organised sector and the balance 97 per cent is unorganised. The country's retail trade is expanding eight to ten per cent every year with an addition of 25 million middle class consumers, he said.

It is expected that the size of retail trade would exceed Rs 20 lakhs crores by 2010. With the growth in disposable incomes, the Indian consumer is emerging as more trend conscious with the development of modern urban life styles. So India is the top destination for global retailers, Mr Khandelwal said.

Calling upon the Union Government to strengthen the internal trade, he said allowing Foreign Direct Investment (FDI) in retail trade or wholesale cash and carry business by MNCs will be detrimental to it. Also at the same time eyes can not be closed towards Domestic Corporate heavy weights opening chain shops without any restrictions and shaking the traditional kirana and fruits and vegetables retailers, he pointed out.

''It makes no difference whether the investment is domestic or foreign,'' he said.

The CAIT has also sought audience with Lok Sabha Speaker to bring the matter to his attention.

UNI