Industry body Assocham today said it has urged the government to confer industry status to the retail sector at a time when the industry ministry has thrown open a debate for allowing foreign direct investment in the sector. The chamber said it has submitted a note to ministries,including finance,commerce and industry and consumer affairs,urging them to confer industry status to the retail sector,which would lead to its further development. The advantages of the status would encompass greater focus on retail development,fiscal incentives,availability of organised financing and establishment of insurance norms,it said. "The status will increase focus on retail development and provide fiscal incentives to it. Also,ensure availability of organised financing and establishment of insurance norms," Assocham Secretary General D S Rawat said. It said,there is also a need to bring the retail sector at par with that of other countries. "There is a need to study the fiscal and regulatory mechanism adopted by other countries in terms of development in the retail sector," Assocham said. It said the status would also help in increasing the organised retail sector's share in the overall retail industry. Currently,the organised retail's share is merely four per cent in the USD 330 billion Indian retail industry,the chamber said. It said the government should consider treating the retail sector as a thrust area,on the lines of food processing sector,as retail has both forward and backward linkages. Further,the chamber said,there is a need of a comprehensive legislation in order to eliminate obtainment of multiple licensing. Currently,retailers need to obtain multiple licences and permissions ranging from basic trading licences to product specific licences and pollution clearances for setting up retail outlets. In June,the industry ministry sought the views of different stakeholders asking whether FDI in the sector should be permitted. The ministry has sought stakeholders comments by July 31. At present,FDI in multi-brand retail is prohibited in India. However,the government allows 51 per cent FDI in single brand retailing and 100 per cent in wholesale trade.
