The Hindu Business Line : `Govt studying models for FDI in retail'

The Commerce and Industry Minister Mr Kamal Nath today allayed fears of Left partners and the Opposition BJP that allowing FDI in retail would openflood gates to foreign companies. The Government had not framed any policy yet, he said.

Replying to discussions in the Rajya Sabha on FDI in retail sector, Mr Kamal Nath said, "we have not agreed to opening up of the sector."

"We are looking at various models. Till now, we have all the bargaining chips in our hand. We have not committed anything on retail at the World Trade Organisation in our offer on services," he said.

FDI Model

He also pointed out that the Government is yet to find a model of FDI in retail that would not replace or displace existing employment but generate additional employment.

The Minister also pointed out that FDI in retail did not mean imports since post liberalisation goods can be freely imported after paying the customs duty.

However, he remained non-committal to demands by members that as and when the Government has a policy it will take the House into confidence before taking any decision stating that all aspects have to be taken into account.

Mr Kamal Nath said that retail sector in the country was growing and it needs to be seen that the investment, which comes in is incremental in nature and does not displace the existing investment and employment.

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