Anna effect: Traders' to broaden drive against FDI in retail

Country wide signature campaign planned

New Delhi, Sept. 6: 

Inspired by the Anna Hazare effect, traders are chalking out an all-India action plan to build opinion against foreign direct investment in retail.

The plan includes a country-wide signature campaign, which will be submitted to the President, Ms Pratibha Patil, approaching all political parties, members of Parliament and State legislatures as well as civil society groups.

“We have begun the process of making presentations and the response from all political parties, including the BJP and Left, has been very positive,” Mr Praveen Khandelwal, Secretary General, Confederation of All India Traders (CAIT), said.

He was speaking on the sidelines of a national workshop on ‘Impact of FDI in Retail Sector of India', attended by experts and traders from 20 States.

Traders said despite the Parliamentary Standing Committee submitting its report in June 2009, Parliament had still not debated the issue. The panel, headed by Dr Murli Manohar Joshi, had recommended a ban on the entry of multinationals and big domestic corporates into retail trade.

Fearing an adverse impact on family-run retail business and “massive” unemployment, CAIT said FDI will not result in better prices for farmers and small producers. Instead, the Government should work out a strategy to upgrade and modernise existing retail trade, it added.

Mr Shekhar Swamy, Group CEO, R.K. Swamy Hansa, a marketing communication firm, said unlike other countries, the Indian retail market was balanced. “It is near perfect, as nobody dominates. Even top retailers' market share is in single digits,” he added.

He, however, said Indian retailers needed to modernise and allegations of adulteration and higher pricing margins need to be dealt with.

Recently, the high-powered Committee of Secretaries had given its nod for 51 per cent FDI in multi-brand retail. The final decision now rests with the Cabinet Committee on Economic Affairs.

At present, FDI up to 100 per cent is allowed in wholesale trade and up to 51 per cent in single-brand retail. The size of India's retail market is estimated at Rs 15 lakh crore, of which 96 per cent is with the self-organised sector.