Govt should allow FDI in multi-brand retail through PPP - Assocham

The government should allow FDI in multi-brand retail through public-private partnership (PPP) with adequate safeguards to protect domestic stakeholders, industry body Assocham has said. “Entry of foreign players in the retail sector must be gradual and with social safeguards so that the farmers, consumers and small retailers are resilient to any potential adverse situation,” it said.

"The government should try to ensure that foreign and Indian players are at equal footing, so that domestic players (especially traditional retailers) are not on the back foot," the chamber pointed out. According to an Assocham study, fresh investment in the country's organized retail sector will generate 10 million new jobs, and about five to six million jobs in logistics alone.

Assocham Secretary General D S Rawat said that there should be modernisation of wet markets (selling fresh meat and produce) through PPPs, along with measures like facilitating cash-and-carry outlets for sale to unorganized retail and procurement from farmers and encouraging co-operatives and associations of unorganised retailers for direct procurement from suppliers and farmers.

Other measures include simplifying the licensing and permit regime for organised retail and moving towards a nation-wide uniform licensing regime to facilitate modern retail and strengthening the Competition Commission's role for enforcing rules against collusion and predatory pricing. FDI in multi-brand retail will transform the retail landscape in a significant way. FDI would not only be fruitful for the economy as a whole but will also integrate our retail sector with the global retail market, the chamber said.