However, seeking to play it safe with a sector which is growing rapidly, the minister said “all this is an issue of the state government. It is not an FDI issue. The state governments need to formulate their rules on this to ensure that it happens in the interest of the nation.”
Meanwhile, the Ministry has asked ICRIER to study the problems faced by small retailers following the entry of corporates into organised retail.
Foreign multi-brand retailers are not allowed entry into India’s USD 330 billion retail market, as there is fear among mom and pop store owners that the giants would take away their jobs.
Lately, even domestic corporate retail ventures have become targets of protests by traders.
Last month, Minister of State for Food Processing Subodh Kant Sahai had asked state governments not to politicise the issue of organised retail chains, saying it will hurt interest of both farmers and consumers.
“I will request the state governments that retail is not an issue. Those who are making it a political issue, are not understanding the seriousness,” he said