P Chidambaram today said that India would open its $330 billion retail market
to foreign investors after convincing the small retail store owners that their
jobs are not under threat from big players.
an interaction with students of Wharton School of the University of Pennsylvania,
Philadelphia, Chidambaram said that in course of time fears would be allayed and
it was only a matter of time before the policy was modified to allow FDI in retail.
experience suggested that organised retail does not drive out the small retailers,
as they would reorganise and thrive, he said that the genuine fear had to be addressed.
There has been
mounting opposition from small retailers who provide employment to millions, as
well as sustained political opposition to permitting even large Indian companies
an entry in to the sector.
in the week commerce minister Kamal Nath had said that the issue was not about
allowing FDI in retail but that of large versus small players, which has had a
disturbing effect on large corporate houses who have planned to focus on retail.