FDI in retail to have limited impact on small traders: Rangarajan

Last Updated: Sat, Nov 24, 2012 15:20 hrs

Kolkata, Nov 24 (IANS) Prime Minister's Economic Advisory Council chairman C. Rangarajan Saturday said foreign direct investment (FDI) in multi−brand retail will have a limited impact on the country's small traders.

"In my view, FDI in retail will have a limited impact on small traders as they have a locational advantage," Ragarajan said here.

According to him, the impact of the move on small traders would be limited due to provisions that large retailers could open stores only in metropolitan towns.

"I think small retailers have not disappeared in the US," Ragarajan said.

He was speaking at an interactive session on 'Indian Economy−Vision 2020', organised of MCC Chamber of Commerce & Industry.

On fiscal deficit, Rangarajan said he was hopeful of containing it at the level of 5.3 percent of the gross domestic product (GDP) for the current financial year.

The former governor of the Reserve Bank of India, however, maintained that complete subsidy to food was of paramount importance for the country.

"The target of the government, as a part of its fiscal consolidation exercise, is to bring down subsidies as a percentage of GDP. But providing complete food subsidy is of paramount importance for countries like India," he said.

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