FDI In Retail: More Jobs Opportunities For Rural Youth

Bangalore: In future, the foreign retailers may have to reserve at least half of their jobs in superstores for the youth in the rural parts India and source more than the authorized 30 percent from micro and small industries, as the government tries to recover the big ticket, reports Shruti Choudhury & Amiti Sen from The Economic Times

An official told that the government is likely to have a relook on the proposal that seeks to reserve at least 50 percent of the jobs in the superstores to the people who have migrated from the villages to the cities in search of job. This proposal was earlier been looked after by the committee of secretaries but later it was dumped.

Government can also consider raising the limit of 30 percent mandatory sourcing of inputs from small industry to conciliate lobbies in the small and medium sectors that say it is not enough to protect the interests of traders. The official also added that the government is thinking over strategies to conciliate various political parties opposing FDI in multi-brand retail. It is open to negotiations on the various clauses that were recommended earlier by the Committee of Secretaries in the month of June this year, but were not included in the cabinet note.

The government which has been criticized for not carrying out any credible study on how these large retail houses would impact on the employment rate in the country, could take up the labour ministry’s proposal that such a study be made a part of the first proposal by foreign investors.

The Cabinet allowed 51 percent FDI in multi-brand retail last Thursday and raised the limit for single brand to 100 percent from 51 percent.

The government which has been pressurized from the political parties told that foreign retailers must source 30 percent of their inputs from domestic micro and small enterprises backtracking from ‘anywhere in the world’ as announced earlier.