Economic Survey 2013: On FDI in retail, small shops giving competition to big retailers
According to the Economic Survey 2013, which was tabled by Finance Minister P Chidambaram in Parliament, as far as small retailers are concerned, organised retail already co-exists with small traders and the unorganised retail sector.
"Studies indicate that there has been a strong competitive response from the traditional retailers to these organised retailers, through improved business practices and technological upgradation," the survey said.
Global experience also indicates that organised and unorganised retail co-exist and grow, it added.
The government has permitted 51 per cent FDI in the multi-brand retail sector and 100 per cent in single brand. The allowing of FDI in multi-brand retail was strongly opposed by few associations of small retailers saying that it would impact their business and jobs.
Seeking to allay such apprehensions, the survey said FDI in multi-brand retail trade would benefit stakeholders across the spectrum of the supply chain.
"Farmers stand to benefit from the significant reduction in post-harvest losses expected to result from the strengthening of the back-end infrastructure, which would
enable the farmers to obtain a remunerative price for their produce," it said.
Small manufacturers will benefit from the condition requiring at least 30 per cent procurement from Indian small industries, as this would enable them to get integrated with global retail chains, it said.
"This in turn will enhance their capacity
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