March 30, 2016



Vijyender Sharma
Shimla----Allowing 100% FDI in E Commerce today by the Union Government has made the Government a U Turn Government known for taking U turn on several policies earlier opposed by the ruling party. It is deeply regretted that party which was shouting at full throat for opposing FDI in Retail is now advocating FDI on one pretext or the other having scant respect for the trading community. It is irony that Prime Minister Mr. Narendra Modi time and again advocating empowerment of small businesses whereas on the other hand regular steps are being taken to disarm the traders from their business activities. Allowing FDI in Food Processing, levy of Excise on Jewelry & Garments and now allowing FDI in e commerce are the living examples of U turn of the Union Government-said the Confederation of All India Traders (CAIT).

It is nothing but a back door entry to global retailers which will facilitate them to side step restrictions in Multi Brand retail since e-commerce has no geographical restrictions-said CAIT National President Mr. B.C.Bhartia and Secretary General Mr. Praveen Khandelwal, in a joint statement released here today at New Delhi. The traders across the Country will strongly oppose this move of the Government. The CAIT is convening an emergency meeting of its National Governing Council to take stock of the situation and to finalise future strategy. 

Both Mr. Bhartia and Mr. Khandelwal said that " We have failed to understand that why so far the Ministry of Commerce has never thought of preparing any proposal to strengthen the domestic trade which is second largest employment generating sector in the Country whereas on the other hand off and on ways and means are being contemplated by the Govt for providing greater access of Indian retail market to global retailers"-said Mr. Bhartia and Mr. Khandelwal.

FDI in retail in e commerce will  hamper the trade and commerce conducted by not only the traders but even by the MSME sector. It will also distort the taxation system since the e-tailers will be registered with taxation department in one state but will be entitled to trade across the Country without seeking registration with tax authorities in other states and will be free to deliver material in another state with paying the local tax of the concerned state whereas on the other hand the traders or the MSMEs need to obtain separate registration in each state if they conduct business activities in more than one state-said both trade leaders.

There are about more than 6 crore business enterprises in retail trade of India which is contributing about 45% to National GDP with an annual growth of 15% with an annual turnover of more than Rs. 39 lakh crores of rupees and more than 46 crores of people are dependent upon retail trade for their livelihood where as on the other hand the MSME sector in India currently contributes around 9 per cent of GDP, accounts for around 36 per cent of the total value of exports and provides employment to over 8 crore persons through more than 3.6 crore enterprises. Also the sector has been growing consistently above 10 per cent for the last five years.

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