No FDI in Indian retail sector

By abhishek at 8 October, 2007, 8:47 am

So what if India has been ranked World No 1 in the AT Kearney Global Retail Index, 2006. So what if the organized and unorganized retail market in India� will grow to $427 billion by 2010 and $637 billion by 2015. That’s no big deal for our Government! Kamal Nath, the Commerce Minister has confirmed that there are no immediate (or late) plans for opening up the retail sector.

Sonia Gandhi has “vehemently” opposed any plans of inviting foreign players. I say, let’s first get our house in order first. Mayawatii from Uttar Pradesh has closed down Reliance Fresh Retail stores in UP. Why? Ask her. Even she doesn’t have an answer. Sure she has won herself a great deal of support from the trading community there.�

The only solace is that the Government has allowed 100 per cent FDI in cash-and-carry and wholesale operations and 51 per cent in single-brand retail. Wal-Mart has already joined hands with companies here to start its operations. Other retail giants like Starbucks, however are still waiting in the aisle hoping that some day the Government of INdia relents and that Starbucks can brew coffee comfortably in India like it does in 40 countries. But, Kamal Nath is in no hurry to grant that.

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Categories : Business