Wednesday, December 13, 2006

Will India have a retail revolution?

The Economic Times reports that the Indian government stood firm on its stance of allowing FDI in retail in phases instead of all at once. The government has permitted FDI in logistics and will also be allowing wholesale trade to be continued. At the India Economic Summit, the government protected the domestic industry by not permitting FDI in retail.

According to Ajay Dua, secretary, department of Industrial Promotion and Policy, the government was reluctant to open the doors to foreign players to protect the ‘mom-and-pop’ stores which employed 21 million people. All industry representatives such as Sunil Mittal, MD of Bharti Enterprises and Adi Godrej, chairman of Godrej Industries did not agree with Mr Dua’s point of view.

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