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Adequate safeguard before allowing FDI in retail
By agencies
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Wednesday, 23 February 2005, 20:30 IST
NEW DELHI:India will let foreign investment in retailing only after ensuring adequate safeguard to protect existing players and unorganized shops, Commerce Minister Kamal Nath said.
"Ninety-eight percent of our existing retail trade is in the unorganised sector and half of that is into subsistence retailing. Foreign investment in the sector has to be incremental," Kamal Nath said.
"It is imperative to immediately identify and implement those policy initiatives required to give a boost to our own domestic fledgling organized retail industry by providing them the desired level playing field," the minister added.
Kamal Nath said foreign investment in the organized retail sector would also lead to creation of employment in support of activities throughout the supply chain.
"After agriculture, the retail sector is estimated to be the largest single sector in terms of turnover as well as employment."