“The parliamentary standing committee will meet the union commerce secretary to draft guidelines on possible regulations in the retail sector within the next two days,” Murli Manohar Joshi, former union minister, said on the sidelines of a meeting on ‘Roadmap for the growth of Indian industry’ held by Merchants’ Chamber of Commerce in Kolkata.
According to Joshi, the committee was studying rules and regulations for allowing domestic capital to operate in the retail segment. “Domestic capital should be allowed only after proper scrutiny and the framing of appropriate rules and regulations,” he added.
Opposing foreign direct investment (FDI) in retail, Joshi said that the entry of big multinational companies including Wal-Mart and Carrefour will lead to large-scale unemployment in the country. According to him, these formats can never satisfy the Indian consumer. “The one-stop-shop formats can never give us quality products. These shops sell their products at much competitive rates, compelling other players to reduce the price. An individual manufacturer finds it difficult to cut down on the cost of raw materials. It, therefore, becomes inevitable to cut down on labour costs,” he said.
Addressing the high inflation, Joshi said, “Inflation is a consequence of economic reforms. Unless there is a balance between the growth targets and inflation, these will continue to be a mismatch.”