Parliament panel seeks ban on corporates in retail

The Parliamentary Standing Committee, headed by BJP leader Murli Manohar Joshi, has recommended a blanket ban on foreign direct investment (FDI) in retail. The 42-member panel has also opposed the entry of large domestic corporates in the retail trading of groceries, fruits and vegetables. It has also opposed building of large shopping malls to sell these products. The report presented by the committee avers that restrictions should be put for opening large malls by corporates for selling groceries, fruits, vegetables and other consumer products, which would thereby result in unemployment as the business of the neighbourhood kirana stores will be affected. The panel said that modern retailers would lead to job losses and force small stores out of business. According to the proposed report, the Government should stop issuing more licensees to MNC retailers or their joint ventures with local partners, for Cash and Carry stores, as it amounts to a back-door entry into the retail trade. Organized retailers account for just around 5% of India’s US$350bn retail sector. The report was tabled in the Rajya Sabha.