The Confederation of All India Traders (CAIT) today demanded allowing Non-Resident Indians (NRIs) and "commercial co-operatives" into the retail sector, for bringing in large investments.
Instead of laying out the red carpet to global retailers, the government should draft a policy to exploit domestic resources to upgrade and modernise the Indian retail trade and a national commission should be set up to identify shortcomings, it said in a statement.
CAIT National President B C Bhartia, Secretary General Praveen Khandelwal and National Convener Pramod Bhagat said CAIT and the Khudra Foreign Direct Investment Virodhi Rashtriya Morcha will take up the issue with the government.
The CAIT statement also said it is working on a project to develop "commercial co-operatives" in India and that a detailed report would be prepared by its research wing, the CAIT Research and Trade Development Society (CRTDS).
The basic principle of commercial co-operatives will be to allow the concept of co-operatives in the retail trade, it said.
Under it, "a large number of small shopkeepers could become members and the government would provide land at subsidised rates so that traders could develop and build commercial complexes", the statement said.
The idea is to develop large commercial complexes with indigenous investment, by indigenous people, for indigenous consumers, so that this would be a win-win situation not only for retail stakeholders, but also benefit the Indian economy, it said.
"The government should work out other alternatives to foreign direct investment in the retail trade," the statement said, demanding that the government should take "remedial measures" to strengthen the Indian retail trade, instead of allowing FDI or FII investments in the retail sector.
