Policy on FDI in retail not finalised: Nath

While making a strong case for FDI in retail sector, Commerce Minister Kamal Nath clarified today that the government had not formulated any policy on it, nor had it agreed to open it up during negotiations at the World Trade Organisation (WTO). He, however, urged the people not to be misled by the 'WalMart phobia'.

Replying to an over two-hour long short duration discussion in the Rajya Sabha today, the minister said that the entire debate on FDI was about 'big versus small' and the apprehension about the displacement of employment (of small retailers).

The government was studying all aspects and remained committed to the National Common Minimum Programme, which talked of creating employment and not replacing or displacing it, he added.

"But mom-and-pop stores are an urban phenomenon. Nobody talks about the rural phenomenon. How will we ensure that 30 to 40 per cent of our food does not go waste? Food and vegetables worth Rs 50,000 crore rot because we can't get them into the shelf ...I come from a district which produces the best oranges in the country but they rot," the minister said, adding that there were different types of retail and it could not be looked at in 'generality'.

Indirectly referring to the strong opposition from the Left allies and from the BJP whose leader Arun Jaitley suggested that the government should go slow on FDI in retail and use it as a 'bargaining chip' while negotiating on services at the WTO, he said, "There is a presumption here as if the government is on a fast track to announce it, as if the government has made up its mind."