News: 'No FDI in Indian retail if it affects small players'

(PTI 09/08/2006) New Delhi - The government will not allow foreign direct investment (FDI) in retail if it adversely affects small retailers, the Commerce Minister, Kamal Nath, said today.

Nath also reiterated the government's commitment to ensure job creation during a meeting with a delegation of Confederation of All India Traders (CAIT), an official release said.

He said only such models for allowing FDI in retail would be considered where there would be no displacement of small players in the sector.

As of now, there is no policy for FDI in retail. The government has so far allowed FDI only in retail of 'Single Brand' products, he said, adding that the main concern was not foreign against domestic, but big against small.

FDI in retail should also bring better technology and improve backward linkages, especially in sectors like food processing so as to reduce wastage of fruits and vegetables and ensure better returns to farmers, he said.

The CAIT delegation, led by secretary general Praveen Khandelwal, presented a paper to Nath on core domestic trade issues. The paper suggested amendment of outdated laws, rationalisation of tax structure, better banking facilities and protection of domestic trade from foreign direct investment.

CAIT has decided to celebrate August 9 every year as Traders Day.