New Delhi: The government has no plans to change the present policy on foreign direct investment in retail trade, Union minister of state for trade said in a written reply to Parliament.
Jyotiraditya Scindia also said there was no proposal to implement full capital account convertibility as of now.
India’s retail business, the second largest employer after agriculture, is estimated to touch $590 billion in two years, Parliament was informed on Monday.
“...the retail trade is estimated to grow at 13% per annum from $322 billion in 2006-07 to $590 billion in 2011-12...,” the minister said in a written reply to the Lok Sabha.
The share of organized retail in total retail has grown from 3.3% in 2003-04 to 4.1% 2006-07.
“Government also fully recognises the need to ensure that small retailers are not adversely affected by the growing organized retail and that there is no adverse effect on employment,” he added.
A Parliamentary Standing Committee on Commerce has recommended a blanket ban on entering of domestic and foreign players into the retail trade.
FDI is prohibited in retail trading except for single brand, where 51% foreign investment is permitted.
Foreign investment up to 100% is permitted under the automatic route in wholesale cash and carry trading.