Rangarajan allays fears over FDI in retail
Kolkata, Nov 24, 2012, DHNS: 1:18 IST
Stressing the need for food subsidy in the country, Chairman of PM’s Economic Advisory Council C Rangarajan said FDI in retail would have limited impact on small retailers.
Speaking at an interactive session organised by MCC Chamber of Commerce, Rangarajan said on Saturday: “FDI in retail would have limited impact on small retailers because the presence of large retailers would be restricted to the metros. Small retailers have a locational advantage and would act more business-like under the shadow of the bigger players.
“In the US small retailers have not disappeared. Even the domestic large corporate houses are not prohibited from entering the retail sector. The only difference was in case of FDI, the ownership would become different.”
Speaking on the necessity of food subsidy, the former governor of RBI said: “The target of the government as a part of fiscal consolidation exercise is to bring down subsidies as a percentage of GDP. But providing complete food subsidy is of paramount importance for countries like India.”
When asked about Chinese goods flooding Indian market through foreign retailers, Rangarajan said “Chinese goods are coming to India through trade even now.”