Home / Knowledge / News / Apparel/Garments / Panel seeks regulatory body for FDI in multi-brand retail
Panel seeks regulatory body for FDI in multi-brand retail
24
Jul '13
The Parliamentary Standing Committee on Industry has suggested the Indian Government to set up a regulatory body to address the problems, including possible joblessness, due to its foreign direct investment (FDI) policy in multi-brand retail trading.
 
Speaking to reporters, Tiruchi Siva, chairman of the committee, said, “We have recommended a regulatory authority to look into the problem (impact of FDI in multi-brand retail on MSMEs).”
 
According to Mr. Siva, if the entry of multi-brand retail chains in India is not regulated properly, it will impact the micro, small and medium enterprises (MSMEs), farmers and small markets (called ‘mandis’ in India).
 
The entry of global retail chains would lead to elimination of ‘mandis’, which would enable foreign retail giants to manipulate prices, forcing farmers to sell their produce at lower prices or prices dictated by multi-brand retailers, according to the report of the standing committee.
 
With the entry of global retailers, local small and medium-sized retail entrepreneurs and all those associated with the retail trade would become jobless, adding to the already existing social and economic woes, Mr. Siva said.
 
If multi-brand retail chains are regulated through creation of a ‘Retail Regulatory Authority’, it would ensure that customers are not fleeced and farmers are not under paid for their produce, he added.
 
The committee also took serious note of the implementation of sourcing norms, and suggested that the minimum 30 percent sourcing from local SMEs should be made applicable item-wise.
 
The report also suggests that the Ministry of MSME should undertake a survey to find out the gains and losses of previous FDI policies on the MSME sector and to ascertain whether they have resulted in creation of any back-end infrastructure, imparted skills to local workforce or upgraded managerial skills, as is being envisaged in the current FDI policy.
 
Since the Government of India approved up to 51 percent FDI in multi-brand retailing in September last year, no global retailer has so far set up stores in India through the FDI route.
 

Fibre2fashion News Desk - India


Must ReadView All

Europe fights against microplastic release from textiles

Textiles | On 18th Jan 2018

Europe fights against microplastic release from textiles

The European Commission, the institution of the European Union, has...

Egypt starts building biggest textile city in Al-Sadat

Textiles | On 18th Jan 2018

Egypt starts building biggest textile city in Al-Sadat

Egypt has started construction of the biggest city for textiles and...

Vietnam targets $20 bn from export of footwear, bags

Apparel/Garments | On 18th Jan 2018

Vietnam targets $20 bn from export of footwear, bags

Vietnam targets to earn around $20 billion from the export of...

Interviews View All

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search