BJP walkout over Nath's reply in LS

No definite proposal 'so far' to open up the retail sector to FDI: Minister

Despite the demand voiced from all quarters of the Rajya Sabha during the question hour today that the government must discuss foreign direct investment (FDI) in the retail sector in Parliament before announcing a policy on the issue, Commerce Minister Kamal Nath said he was unable to give such an assurance.

The Bharatiya Janata Party (BJP) derived from this that some kind of policy might be announced in the inter-session period and walked out of the House when its pleas to the Chair to get the minister to say that a policy pronouncement would be deferred until Parliament had discussed it, failed. Nath replied that he "could not" and "would not" give such an assurance.

In a politically charged atmosphere in the Upper House, the question, raised by BJ Panda (BJD) was whether the government was planning to carve out retailing into separate categories and proposing to allow FDI into the sector.

Had the consumer affairs department been asked to prepare a note on the organised retail sector? the MP asked.

The minister said while there was no definite proposal "so far" to open up the retail sector to FDI, talks were on with "stakeholders".

"Consumers and suppliers are being consulted,' Nath said. While valid points had been raised about opening up the retail sector it was a fact that the retail trade contributed 10 per cent of the gross domestic product (GDP), there were 15 million retail outlets in India and the country had the highest retail density in the world, the minister added.

The industry was the second largest employer in India engaging six-seven per cent of the work force. Only four per cent of establishments in the retailing industry were above 500 sq feet and of the two per cent in the organised retail sector, one per cent represented the food industry. Over 98 per cent of the industry was unorganised.

Nath said India was seeing major growth in this sector and would hold consultations before taking any decision that affected such a large section of the population.

Sushma Swaraj (BJP) noted that the government had not given a commitment to discuss the matter in Parliament and merely said there was no decision on this "so far". She warned the government against allowing FDI in the retail sector without discussing it with representatives of the public.

Nath repeated that he could give no such assurance, but added whatever was appropriate for India would be done, keeping in view the future of small shops. "We do not require any education from any one," he said.

Abu Azmi (Samajwadi Party) wanted a clear policy from the government on not allowing FDI in the retail sector. PC Kurien (Congress) said: "FDI in retail will not only be detrimental to the small trader but to the entire country".

"These are not new concerns. Everyone is conscious of stakeholders' interests. We are all here, representing Indian society and people," Nath said.

However, the BJP still walked out of the House, just as question hour was ending.