News: Is a Retail policy on the anvil?

(TV18 27/05/2006) Mumbai - Commerce Minister Kamal Nath says that big Indian retailers are as much a threat to mom-and-pop stores as Wal-Mart and Tesco. CNBC-TV18 reports that a retail policy might just be on the anvil.

Big Indian retailers can now upset the apple cart. The Commerce Ministry is looking at bringing out a policy on retail. Commerce Minister Kamal Nath says that its not just foreign retailers that could displace mom and pop stores.

Big Indian retailers could have the same effect and the government will look into it. Currently, there is no policy for this sector. This comes at a time when companies like Reliance Industries and Bharti are drawing up big retail plans. For foreign retailers, the ministry is looking at a model, which would ensure that there is little displacement and adequate investments.

A few months ago, the government opened up single brand retail. Nath says that while proposals have been received from high end brands, none have been cleared so far. Nath says that FDI in single brand retail would ensure that sourcing and manufacturing would increase substantially.

Nath says that he expects investments to the tune of Rs 500 crore. India hasn't offered opening up retail in its initial services offer to the WTO. But Nath says that it could be used as a bargaining chip.