FDI in Retail - Conclusion: Let the People give the Mandate

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Conclusion

Centuries ago, the then ruler of India, pleased by the gifts and sweet talk brought him by an Englishman, was generous enough to grant Concessions to the East India Company to set up shop in this Country. That led to India becoming the Jewel in the Crown of the British Empire.

In the 21^st Century, in a different time and context, History may be about to be repeated in some ways. The consequences of granting Trading Concessions to the East India Companies of today, looking for Jewels in their own Crowns, will last for long - whether good or bad.

Having taken an overall perspective, the following conclusions can be reached and it is hoped that the Government would recognize the need to tread with caution in this matter:

1. Allowing foreign entities in Retail is a fundamental issue of Policy with ramifications and implications of a permanent nature. Therefore, it would be desirable to ensure that such a move has the support of the People, who are the real stakeholders.
   
2. It would be premature to allow foreign entities to establish Retail operations in the Country at this point of time except in the manner already permitted at present.
   
3. In particular, entry of foreign entities in the Retail sector of Food and Groceries WOULD NOT BE IN PUBLIC INTEREST at this stage and may not be allowed.
4. The Indian Entrepreneur is capable of making the Retail structure responsive to present day needs, due to his innate abilities and intimate knowledge of the Indian market and it is desirable to allow him to fully benefit from the new opportunities.
5. If there are any impediments in obtaining latest technology and management skills for creating a modern Retail structure, the Government may remove such impediments to help Indian Enterprise.
6. The existing Guidelines for entry of foreign entities in the country as regards trading activities may be retained at this stage. On the other hand, Press Note No. 18 needs to be restored.
7. While entry of Foreign entities in Retail may be considered after careful study in future considering the overall global developments, the Indian Entrepreneur should be allowed a head start of at least 5 years before such liberalization.

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