"There is no question of allowing FDI in retail if it adversely affects small retailers in the country. We would look only at such models where there would be no displacement of small players in the retail sector," Kamal Nath, Commerce and Industry Minister said.
Addressing a delegation of traders that called on him, he said presently, there is no policy for FDI in retail and the government has ensured suitable safeguards against adverse impact on small traders by allowing FDI only in retail of 'Single Brand' products.
Nath said the main concern is not foreign versus domestic, but big versus small. The issue is not just about buying and selling but also about access to technology and backward linkages among others in areas like food processing so as to reduce wastage of fruits and vegetables and ensure better returns to farmers for their produce, he added.
"I have not yet found the right model (for retail)," he said. The Confederation of All India Traders also submitted a memorandum of demands to the commerce minister seeking merger of all commercial taxes and amendment of outdated laws.