Home / Knowledge / News / Apparel/Garments / Parliamentary committee tables report on FDI and MSMEs
Parliamentary committee tables report on FDI and MSMEs
Aug '13
A report regarding the FDI policy for retail and it’s effects on the Micro, Small and Medium Enterprises (MSMEs) in the country, titled ‘FDI in multi-brand retail on MSMEs’, has been tabled in the Indian Parliament, reports the Economic Times quoting PTI.
The Parliamentary Committee on Industry is of the opinion that the FDI for retail may not have beneficial impact on the MSME sector. It is of the view that not enough safeguards have been provided to insulate the MSME sector from sudden changes in trade policy.
The entry of global retail chains would lead to elimination of farmers and small markets (called mandis in India), 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.
The committee, headed by Tiruchi Siva, said the MSME Ministry should commission a survey to assess the benefits and losses of previous FDI policies on the sector. 
The committee feels that FDI in retail may not benefit the retail sector unless designing, packaging, bar coding, skill development are improved upon and integrated into supply chain, the report states.
The implementation of policy provision should be closely monitored through an institutional mechanism in the initial years, and not left to self-certification.
In September 2012, Government of India approved up to 51 percent FDI in multi-brand retailing.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 29th Apr 2017

EU rules needed to curb textile worker exploitation: MEPs

European Union (EU) rules are needed to oblige textile and clothing...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Paolo Ocleppo
Sandvik Hyperion

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
April 2017

April 2017

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


Browse Our Archives


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