IndiaRetailBiz

“India will open up its huge retail market (USD 330 billion) to foreign investors,” said P Chidambaram, Union Finance Minister, while interacting with students of Wharton School of the University of Pennsylvania, reports PTI. “This would be done after convincing local Kirana (mom and pop) store owners that their jobs will not be threatened by big players,” he added.

These comments come in backdrop of raging controversy in the country about the role of even large businesses, let alone FDI, in retail in India? Politicians of all hues and colours, including Congress President Sonia Gandhi have voiced concerns about the livelihood security of 12 million traders in the country.

“In course of time their (small traders) fears will be allayed and it is only a matter of time before the policy is tweaked to allow FDI in retail,” he added.

“Experience tells us (organised) retail does not drive them (small retailers) out. They will reorganise themselves and thrive. But there is genuine fear that has to be allayed,” Chidambaram told students at a packed Dhirubhai Ambani auditorium at the school after delivering the Wharton Leadership Lecture.

Earlier this week, Commerce and Industry Minister Kamal Nath had said that the issue was not about allowing FDI in retail but that of ‘large versus small’ players. His ministry has asked economic think-tank ICRIER to study the situation and the report is expected in a month.