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 27th Feb 2017

Surat to get a mega textile park, centre of excellence

The textiles ministry is positively working on the proposals for a...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: Invista

Textiles | On 27th Feb 2017

Invista explores alternatives for apparel & textile trade

Invista, one of the world's largest integrated producers of chemical...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search