Allowing FDI in E-Commerce is death knell for small traders, says CAIT
New Delhi, Mar 30 (KNN) It is irony that Prime Minister Narendra Modi time and again is advocating for empowerment of small businesses whereas on the other hand regular steps are being taken to disarm the traders from their business activities, said the traders' body CAIT.
Calling the Narendra Modi led Central Government a “U-Turn Government”, the Confederation of All India Traders (CAIT) said allowing 100 per cent FDI in E-Commerce is deeply regretted.
“Allowing 100% FDI in E-Commerce today by the Union Government has made the Government a U Turn Government known for taking U turn on several policies earlier opposed by the ruling party,” CAIT said.
It is deeply regretted that party which was shouting at full throat for opposing FDI in Retail is now advocating FDI on one pretext or the other having scant respect for the trading community, it added.
Allowing FDI in Food Processing, levy of Excise on Jewellery & Garments and now allowing FDI in e commerce are the living examples of U turn of the Union Government-said the CAIT.
“It is nothing but a back door entry to global retailers which will facilitate them to side step restrictions in Multi Brand retail since e-commerce has no geographical restrictions,” said CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal, in a joint statement.
The traders across the country will strongly oppose this move of the Government. The CAIT is convening an emergency meeting of its National Governing Council to take stock of the situation and to finalise future strategy.
The senior officials of the association said, “We have failed to understand that why so far the Ministry of Commerce has never thought of preparing any proposal to strengthen the domestic trade which is second largest employment generating sector in the Country whereas on the other hand, off and on ways and means are being contemplated by the Government for providing greater access of Indian retail market to global retailers.”
FDI in retail in e commerce will hamper the trade and commerce conducted by not only the traders but even by the MSME sector. It will also distort the taxation system since the e-tailers will be registered with taxation department in one state but will be entitled to trade across the Country without seeking registration with tax authorities in other states and will be free to deliver material in another state with paying the local tax of the concerned state whereas on the other hand the traders or the MSMEs need to obtain separate registration in each state if they conduct business activities in more than one state-said both trade leaders, said CAIT.
There are about more than 6 crore business enterprises in retail trade of India which is contributing about 45 per cent to National GDP with an annual growth of 15 per cent with an annual turnover of more than Rs. 39 lakh crores of rupees and more than 46 crores of people are dependent upon retail trade for their livelihood whereas on the other hand the MSME sector in India currently contributes around 9 per cent of GDP, accounts for around 36 per cent of the total value of exports and provides employment to over 8 crore persons through more than 3.6 crore enterprises. Also the sector has been growing consistently above 10 per cent for the last five years. (KNN Bureau)