Centre, states discuss FDI in multibrand retail, e-commerce

NEW DELHI: State governments today suggested that the interest of small retailers and consumers should be protected while promoting foreign direct investment in retail and e-commerce.

Several issues pertaining to foreign direct investment (FDI) in multi-brand retail and emerging e-commerce business in the country were discussed during a meeting chaired by Commerce and Industry Minister Nirmala Sitharaman here.

"Today Government of India invited states to (discuss) the issue of FDI in e-commerce (both) B2B and B2C and also bringing FDI in multibrand retail," Haryana Finance and Industry Minister Captain Abhimanyu told reporters after the meeting.

"But one consensus between the states and the centre was there that whatever decision is taken, it must be taken after a good deliberation and after engagement with stakeholders at state levels and after assuring ourselves that the interest of the consumers, small retailers as well as SME sector are protected," Abhimanyu said.

"All the states will give their views and comments on the matter within 15 days to the Centre," he said, adding case studies should done to see the impact of permitting FDI in retail and e-commerce in different countries.

Sharing views on protecting interest, Punjab Industries and Commerce Minister Madan Mohan Mittal said that issues related with FDI in multi-brand and retail need clarity.

Jammu & Kashmir Minister for Industries Chander Prakash said that it was not possible to ignore the emerging e-commerce business in the country but "we have to be careful while introducing (FDI) in e-commerce".

"The FDI in e-commerce needs more debate and discussion. More meetings will be held on the issue. We will discuss the pros and cons in detail in our state. States ask for more time on the issue," Prakash said.

However, some states, including Tamil Nadu are opposed to any kind of FDI in retail and e-commerce.

The Haryana Finance and Industry Minister also said, "There were suggestions that if China can have company like Alibaba then why not India. India also has the potential to bring company like that. We have large market place, strong technological background, we are software giants in the world."