“There is no proposal to allow FDI in retail (and) government is not thinking of it because it wants to protect the interest of retailers,” he said replying to supplementaries during Question Hour in Rajya Sabha.

He said International Council for Research on International Economic Relations (ICRIER) will submit its report on impact, if any, of domestic organised retailing on the unorganised retail sector by May-end.

Sectoral study
The study on ‘The Impact of Organised Retailing on the Unorganised Retail Sector’ was commissioned in March 2007. ICRIER was to submit its report in July 2007 but the schedule was changed to enable additional survey.

It would cover “effect of organised retailing on small retailers and vendors in the unorganised sector keeping in mid the likely growth in the overall market and effect on employment,” he said. The recommendations and findings of the study would help governemnt take a view on the need to have a policy on the issue, he added.
Mr Pawar said the Centre does not regulate retailing and it falls under the jurisdiction of the state governments. State governments can allow or disallow setting up of retail establishments.

“The retailers/traders register their shops with concerned authorities in various states. At present, there is no restriction on the entry of any domestic investor into retail sector,” he said pointing to 10-12 big corporate and industrial houses envincing interest in organised retail.