Kapil Sibal wants national policy on retailers

NEW DELHI: India needs a national trade policy to help retailers compete globally, Law and Telecom Minister Kapil Sibal said today.

"A national trade policy, which should facilitate credit, infrastructure and modernisation to help traders compete at international level is a must," he said.

The Minister also said he would request all political parties to include this in their manifestos.

His comments came a day after BJP's Prime Ministerial candidate Narendra Modi asked the trading community not to run away from global challenges but adapt itself to modern practices like tying up with bigger stores and online trading.

The government wanted traders to compete and expand to the global level for which they need infrastructure and facility as available abroad, Sibal said at an event of retailers, organised by the Confederation of All India Traders (CAIT).

"The biggest problem among traders is of credit. We want traders to compete at global level. Globally credit is given at 1 per cent, here you get at 12-14 per cent. You don't have world class infrastructure and facilities. So, how will you compete?" he asked.

The Minister spoke in favour of FDI- an issue vehemently opposed by CAIT-- saying that it helps traders to grow scale of business, like the way it happened in the automobile sector.

"When we changed our policy on automobiles, at that time we had only two cars, FIAT and Hindustan, there were concerns about these two companies. Then we brought Maruti and today we make cars here. Indian automobile components makers are supplying to global car companies abroad. We have to adopt a similar thought. I am in favour of FDI," Sibal said.

"I want to modernise the trading sector. If someone abroad wants to buy your product online then you will only gain. When business will show standard and price, then a person will compare, trust and buy products. Then people will invest as well. We will have to adopt this thought," he said.

Addressing traders yesterday, Modi did not refer to foreign direct investment (FDI) in retail, which his party is strongly opposed to.

"I don't know if it will benefit me politically... Trading community should not run away from global challenges. They should not think they will die if businesses go online... You demand from government help to build your capacity to meet challenges...

"A small town buyer is also looking for branded products. We should not meet to decide how to escape from this but how to take it on. You should enhance your quality and filter out those whose quality is suspect," he had said at a CAIT function.