Saturday, February 24, 2007

Retail Onslaught has government attention

The Indian Government takes notice of the retail onslaught. Prime Minister Manmohan Singh has ordered a full study on the impact of the retail chains on the existing small businesses and retailers.

Sonia Gandhi, the chairperson of the UPA government had voiced concerns over the impact of the "transnational supermarkets" on the local shopkeepers and the Prime Minister's Office (PMO) reacted promptly on the issue. It has gone one step ahead and included the retail chains being set up by the major Indian business houses like the Tata, Reliance, Bharti etc. into the scope of the study.

It must be noted that all the previous governments of the country have always promoted self employment and entrepreneurship specially at all levels and the entry of the large corporates in the retails sector directly impacts this stand.

It appears that the government is keen on making a comprehensive retail policy. In a letter to the Department of Industrial Policy and Promotion (DIPP), the department has been asked by PMO to complete the study in a reasonable timeframe so that it may be used as an input in the policy that is to be made in the near future.

This announcement will certainly make the transnational retail houses and big Indian business houses apply the brakes on their ambitious retail plans in the country.

Let us wait and what the study uncovers. Meanwhile the the small retailers and shopkeepers who were getting scared of the on-coming retail onslaught have got a breather.

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