Wal-Mart, Tesco may lose
By Gunjan Pradhan Sinha, TNN |
Highlights
NEW DELHI: The political storm over FDI in retail gathered strength on Wednesday with the debate now spilling over to organised domestic retail too. Politicians-emboldened by Congress president Sonia Gandhi���s letter to Prime Minister Manmohan Singh on the issue-now want to know if the emergence of large retailers was behind the current rise in retail prices of grocery and vegetables.
With Congress backing their leader���s concern for small retailers and apprehensions about the impact of Wal-Mart���s entry into India, formulation of rules and policy consultations on allowing foreign direct investment (FDI) in sectors like stationery, sports goods, construction equipment and electronic hardware has come to a grinding halt.
With Ms Gandhi���s letter to Mr Singh-suggesting a thorough review of the impact of retail opening up on small traders-being forwarded to the commerce and industry ministry, further liberalisation of retail FDI came to a halt and even the existing windows came under the cloud. Commerce & industry minister Kamal Nath said the impact of FDI in retail would be studied in line with the PMO���s wishes. He confirmed that the PMO has sought details on the FDI policy on retail. ���We have sent our comments,��� he added.
Congress spokesman Abhishek Singhvi waffled when grilled by journalists about the party���s stand on the impact of domestic organised retail on small traders. Kerala chief minister VS Achuthanandan, it may be recalled, had blamed the recent spurt in prices on Reliance���s procurement for its retail operations.
Confirming a halt in all retail FDI-related work, a senior government official told ET, ���Till we get further communication from the bosses, the proposal to open FDI in more areas has been put on hold.���
With Congress backing their leader���s concern for small retailers and apprehensions about the impact of Wal-Mart���s entry into India, formulation of rules and policy consultations on allowing foreign direct investment (FDI) in sectors like stationery, sports goods, construction equipment and electronic hardware has come to a grinding halt.
With Ms Gandhi���s letter to Mr Singh-suggesting a thorough review of the impact of retail opening up on small traders-being forwarded to the commerce and industry ministry, further liberalisation of retail FDI came to a halt and even the existing windows came under the cloud. Commerce & industry minister Kamal Nath said the impact of FDI in retail would be studied in line with the PMO���s wishes. He confirmed that the PMO has sought details on the FDI policy on retail. ���We have sent our comments,��� he added.
Congress spokesman Abhishek Singhvi waffled when grilled by journalists about the party���s stand on the impact of domestic organised retail on small traders. Kerala chief minister VS Achuthanandan, it may be recalled, had blamed the recent spurt in prices on Reliance���s procurement for its retail operations.
Confirming a halt in all retail FDI-related work, a senior government official told ET, ���Till we get further communication from the bosses, the proposal to open FDI in more areas has been put on hold.���
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