(a) whether big corporate houses and MNCs have entered the retail sector of the country in a big way;
(b) if so, whether this has led to an adverse impact on the small retailers in the
unorganized sector who are on a verge of losing employment; and
(c) if so, the steps being taken by the Government to tackle this situation?
THE MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND THE MINISTER OF STATE IN THE
MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION(DR. AKHILESH PRASAD SINGH)
(a) & (b): There is no restriction on the entry of the big corporate houses and other
domestic investors into the retail sector. So far as foreign investment in the retail sector
is concerned, as per extant policy, Foreign Direct Investment (FDI) is not permitted in retail
trade, except in ‘single’ brand retail trade. The organized retail sector would reduce the
cost of intermediation on account of economies of scale benefiting consumers and producers/
farmers. It also helps in establishment of cost effective supply chains. Besides, the
organized retailing sector would create more employment opportunities and improve the quality
of employment in the long run. The share of organized retailing in the total retail trade
is very small and it would not have any major adverse impact on retail outlets in the
unorganized sector.
(c) : No action seems to be necessary at present in view of replies to (a)
and (b) above.