Government said on Wednesday there would be no negative impact of organised retailing on the unorganised sector which accounts for 96 per cent of retail business.
Replying to supplementaries in Rajya Sabha during Question Hour, commerce minister Anand Sharma said, "There can be no negative impact of organised retailing on unorganised sector as 96 per cent of retail business is in unorganised sector.
"Moreover 3.5 crore (35 million) people have got jobs in the retail sector and the incomes too have increased in recent times." The minister said the government had instituted a study on impact of organised retailing on unorganised sector through the Indian Council for Research on International Economic Relations.
The study said the unorganised retail sector is expected to grow at about 10 per cent per annum with sales rising from $309 billion in 2006-07 to $496 billion in 2011-12.
Sharma also said farmers too would get maximum returns for their produce, more than what they get in the 'mandis'. He also said, "there is no restriction on the entry of domestic investors into retail sector."
As per the existing policy, FDI is not permitted in retail trade, except in 'single brand' product retailing, where foreign direct investment up to 51 per cent is permitted with prior government approval. Also 'single' brand product-retailing would cover only products which are branded during manufacturing.
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