New FDI norms will protect small retailers: Prabhu

by Apparel Resources News-Desk

11-January-2019  |  2 mins read

Suresh Prabhu
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The Foreign Direct Investment (FDI) policy is clear and don’t think there should be any confusion, Commerce Minister Suresh Prabhu recently said in an interview to ET Now.

“The new policy is not made with an intention to interfere in the existing business model. The government is trying to make the policy framework simple, transparent, participatory and trying to protect small retailers in India.” – Suresh Prabhu, Commerce Minister, India  

The new plan is prepared to achieve the US $100-billion goal from the FDI, as against last year when it was US $ 61.85 billion, he disclosed.

On creating a monopoly for domestic players, he said that the e-commerce policy was initially started by the commerce department.

The Department of Industrial Policy and Promotion (DIPP) is now looking after the issue and queries by the consultants. He further said the DIPP secretary has been in touch with those, who are facing hurdles.

The stakeholders’ views on framing the policy have been considered for the first time, he commented. “When the e-commerce policy will come, we will deal with the domestic versus foreign issues,” Prabhu commented.

The players operating domestically doesn’t need any policy, the FDI is concerned for the outside players.

The e-commerce policy is a subject-specific policy, whereas FDI is related to a particular sector. And hence to deal that, a single brand retail model is being considered, he added.

For a single brand model, how does a single brand operates at a market place has to be defined. Therefore, the clarification will come after secretary commerce of DIPP meets all the stakeholders, the Commerce Minister added.

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