FDI
IN MULTI- BRAND RETAIL
Comprehensive domestic retail trade policy needed
New
Delhi/ 3rd October 2011: WASME seminar on FDI in Retail:
Challenges for Micro, Small and Medium Enterprises, concluded
with a call for arriving at a comprehensive trade policy
to regulate domestic trade sector. There are policies/ laws,
but they are on different aspects and are administered by
different agencies/authorities. Absence of a comprehensive
policy makes the entire retail operations direction-less
and also provides less chance to MSM retail enterprises
to fight for their interests. A comprehensive policy would
not only help them grow on a sustained basis but would also
help government to address their problems more effectively.
Seminar was on 1 October 2011, in Noida, Sector 6, at Hotel
Royale Park.
Seminar
was organized in the backdrop of government of India’s
plan to permit 51 percent foreign direct investment in the
multi-brand retailing. There were four speakers and they
were Mr. Pankaj Priya, Chairperson, Centre for retail, BIMTECH,;
Dr. Arpita Mukherjee, Prof, ICRIER ; Mr. Dharmendra Kumar,
Director, India FDI Watch and Mr. Praveen Khandelwal, National
Secretary General, Confederation of All India Traders (CAIT).
Mr. Pankaj Priya in his presentation, talked about impact
of FDI in Retail on SMEs and Mr. Dharmendra Kumar addressed
the issue of its impact on livelihood. Dr. Arpita Mukherjee
explained in detail about policy framework to safeguard
the interests of SMEs. Mr. Praveen Khandelwal presented
the viewpoint of trade enterprises on entry of multinational
corporate houses. Mr. V N Prasad, Senior Economic Advisor
WASME moderated the discussions.
President
of WASME Mr. B. U Girei in his keynote address, called upon
governments to treat SME retail trade enterprises on par
with other SMEs and accord them industry status. He observed
that though they contribute substantially to GDP, and employs
large number of workers next to agriculture, are still not
given the status of MSMEs in many developing and emerging
economies. Any impact on these enterprises implies that
a major chunk of population will be affected. In his remarks,
Mr. Gyan Prakash Agarwal, Secretary General WASME highlighted
the relevance of small retail sector to the general economy,
both in terms of employment generation and GDP. Importance
of the retail sector lies in the fact that as an economic
activity it provides income and employment opportunities
for unemployed, pensioners, women, disabled and any other
weaker sections. He said that several small retail enterprises
not only make a living for self and family but also promotes
lesser known products/brands by providing space to them
on their shelves. He observed that it is a global issue
and SMEs of many countries are facing problems from large
global retail chains. Policy framework governing market
economy should promote inclusive globalization.
Others
who spoke on the occasion are Mr. Richard Frege, Second
Counsellor Namibia High Commission, New Delhi, Dr. Gurendra
Nath Bhardwaj of NIIT University, Jaipur, Mr. Sushil Kumar
Jain, District President UP Udhyog Vyapar Pratinidhi Mandal.
Mr. Frege of Namibia explained the status of SME service
enterprises in Namibia in the context competition faced
from global retail chains. Mr. Sushil Kumar Jain explained
from his personal experience how small trade enterprises
are impacted with the entry of large corporate retail chains.
Dr.
P. Koshy, Senior Economist, WASME and Mr Sidhartha Mishra,
Executive Secretary, WASME also spoke on the occasion. The
seminar was sponsored by CA Cooperative Thrift & Credit
Society Ltd. & Radius Synergies Pvt Ltd.
Download
Secretary General’s Statement
For
more details: Contact Dr. P. Koshy, Senior Economist
WASME, 91-9953871432, Koshy.wasme@gmail.com
