FNB News - Govt not considering opening FDI in retail trade , minister tells CAIT

You can get e-magazine links on WhatsApp. Click here

TOP NEWS

Govt not considering opening FDI in retail trade , minister tells CAIT

Tuesday, 07 July, 2015, 08 : 00 AM [IST]

Our Bureau, New Delhi

Union commerce & industry minister Nirmala Sitharaman has said that Union government is not considering to open FDI in retail trade. She told this to a delegation of Confederation of All India Traders (CAIT) which met her recently to discuss issues related to Foreign Direct Investment (FDI) in retail, a policy that the body has been opposing.

The delegation also presented a White Paper on FDI in Retail to Sitharaman while demanding withdrawal of notification on allowing 51% FDI in multibrand retail.

Further, with regard to e-commerce, a cause of concern for the traders as the government is yet to come out with regulations in this area, the minister stated that she has already begun the process of discussion for policy on e-commerce. This was in response to a demand by CAIT for policy on e-commerce business in the country.

The body pointed out that the minister had said that e-commerce was gaining depth among consumers and was a more technology-driven business format. States have a greater role to play in e-commerce, as it involves taxation jurisdiction that comes under the domain of states. “As such, much detailed discussion not only with stakeholders but also with state governments, banks and other allied agencies was very much required,” said CAIT in a statement.

CAIT stated that the minister appreciated its demand for forming a National Trade Policy for Retail Trade and assured that she would examine the issue. The minister appreciated the role of small businesses in the economy of the country and assured the delegation that government will take all necessary steps to enhance entrepreneurial skills of small businesses while recalling the recent launch of MUDRA Bank by prime minister, as one such example of government's thinking towards small businesses.

The delegation was led by Praveen Khandelwal, national secretary-general, CAIT; and comprised Om Prakash Sharma, Delhi MLA & CAIT vice-president; Suresh Bindal, president, Delhi Hindustani Mercantile Association; Satender Jain, national secretary, CAIT; Pramod Aggarwal, general secretary, Delhi Canvas Merchants Association; and others.