Govt to reach out to traders on retail reforms

The government on Friday said it will reach out to domesticretailers later this month in its bid to evolve a consensus on allowing foreigndirect investment in multi-brand retail.

"We had consulted food processing and small scaleindustry. Next round will be with the consumers and farmers. This will befollowed by retailers. It is all slated," Secretary in the Department ofIndustrial Policy and Promotion (DIPP) P K Chaudhery told reporters on thesidelines of a Cement Manufacturers' Association's meeting here.

Secretary General of the Confederation of All India Traders(CAIT) Praveen Khandelwal said he has not received any communication from theDIPP so far. Along with some political parties, the traders have stoutlyopposed the move to open the domestic retail market to international chains.

But, despite a setback on the politically-sensitive issue,the government has renewed its efforts to forge a consensus on opening thedoors to global retailers in multi-brand retail, estimated to be about $550billion market.

Asked when the renewed consultations would be completed,Chaudhery said, "Probably, by this month (end)".

Following opposition from several political parties, thegovernment was forced to put on hold its November 24 decision for allowing FDIin multi-brand retail.

Liberalisation in the sector would have paved way for globalretailers like Wal-Mart, Tesco and Carrefour to open outlets in India.