There was good news for the retail sector with the government informing Parliament that there were no restrictions on corporate houses entering the retail sector.
“There is no restrictions on the entry of big corporate houses and other domestic investors into retail… no action seems to be necessary at present to formulate any separate policy to tackle the issue,” Minister of State for Consumer Affairs Taslimuddin told the Rajya Sabha in a written reply.
To a question whether major corporates entering the retail sector specially in fruits and vegetables, would entail unemployment, and if government has formulated any policy to tackle the issue, he said there would be no major impact on unorganized sector and no specific policy has been chalked out.
The share of organised retailing in the total retail trade is very small, Taslimuddin said adding it would not have any major adverse impact on retail outlets in the unorganised sector.
He said organised retailing sector would create more employment opportunities and improve the quality of employment.
“It also helps in the establishment of cost-effective supply chains,” he added.