"We are looking at it with a great sense of urgency. If we look at the food sector, it is the most compelling reason as 40 per cent of our fruits and vegetables rot due to lack of processing facilities," he said in his inaugural address at a FICCI retail seminar.
He, however, did not give a timeframe as to when the views would be firmed up. Seeking a public debate on foreign direct investment in retail, he said any FDI should be incremental and not displace or replace the existing investment.
He pointed out that focus should be on policy initiatives for the growth of the sector.
"We are very clear that if at all FDI is permitted in retail trade, it should lead to incremental economic benefits and not substitute the on-going activities. There is no question of replacing or displacing what we already have. It must add to economic activity," Nath said.
Noting that the subject was far too complex, he said greater caution was required to understand all the implications and then take a view.
He said expansion of construction will have to be synchronised with the expansion in retail as the high costs of commercial space would determine the future growth.
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