(a) whether the share of trade of small shopkeepers in total GDP is on the decline due to proliferation of Malls Controlled by MNCs;
(b) if so, the response of the Government thereon; and
(c) the steps taken to safeguard the interest of small shopkeepers?
THE MINISTER OF
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI RAM VILAS PASWAN)
(a) to (c) : A Statement is laid on the Table of the House.
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STATEMENT REFERRED IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO.*380 FOR 28.03.2017 REGARDING SAFEGUARDING SMALL SHOPKEEPERS.
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(a) & (b) : Retail trade is State subject. The share of trade of small shopkeepers is not maintained by the Central Government.
(c) : To look after the interest of the Indian SME Sector, provisions have been made in the FDI policy. For retail trading of single brand products, in respect of proposals involving foreign investment beyond 51%, sourcing of 30% of value of goods purchased has been mandated to be done from India, preferably from MSMEs, Villages and Cottage industries, artisans and craftsmen in all sectors.
Further, for Multi-Brand Retail Trading, at least 30% of the value of procurement of manufactured/processed products purchased has to be sourced from Indian micro, small and medium industries, which have a total investment in plant & machinery not exceeding US $ 2.00 million. Government is also providing tax benefits to safeguard interest of MSMEs, and it has proposed in the union budget 2017-18 to reduce the taxe rate of those reporting turnover of less than Rs.50 crores to 25% from 30% .
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