Sunday, November 27, 2022

Indian retail trade is hostage of global MNCs and big companies: CAIT  

Jamshedpur, Aug 19: The retail trade of India having four prominent verticals including small retail, corporate retail, e commerce and Direct Selling is expanding at a fast pace but except direct selling ,  in absence of any policy or guidelines of the government , the retail sector has become an open play ground for setting own rules and has been greatly captivated and monopolised by global MNCs and big companies thereby greatly tarnishing the prospects of doing good business by the small traders of the Country. More than one lakh shops, majorly of mobile trade, have been closed so far due to unruly business behaviour of these companies and sadly there is no effective mechanism to check their business conduct. The law process in the Country is so slow which has failed to do justice with the indigenous retail trade. If we have to keep alive the small traders and the retail trade working democratically, there is an emergent need of a comprehensive policy for all verticals and a Regulatory Authority to monitor trade activities on all four verticals- argued the Confederation of All India Traders ( CAIT) today urging Union Commerce Minister Shri Piyush Goyal to take immediate effective steps before the global MNC and big companies cause further damage to the businesses of small traders. More than 1.5 lakh small shops majorly of mobile business have been closed due to courtesy of big MNCs.

CAIT National Secretary General Praveen Khandelwal and National Secretary Suresh Sonthalia said that over a period of last ten years, the MNCs have earned enormous money from India but large portion of that money was transferred to their native Countries as a Royalty. It is highly regretted that they came to India on the pretext of FDI in India but the said money was used in various business mal- practices or to burn cash in order to control & dominate the retail trade. The FDI in its true sense is which developed infrastructure and bringing advantages to the Country.  These companies were found in doing transactions of illegal goods, openly flouting the law, rules and policy guidelines, creating a non- level playing field, evading both GST and income tax at a large scale but so far no action has been taken against them for vitiating the retail eco system leaving the traders highly disappointed. Why a safe passage is given to global MNCs is beyond anyone to understand. If law and rules are not respected by big companies then why the axe falls on the small traders- questioned the trade leaders.

Both Khandelwal & Sonthalia said that in the current technology era, the data has become a sovereign wealth and these companies have accumulated large data of India and no one knows in what way the data has been used. There seems to no government control over the data they secure.

Both the trade leaders said that if no early steps are taken by both Central and State Governments, the traders of the Country are bound to loose trade to global MNCs and big companies. The retail trade is already facing several roadblocks and trying to recover on its own, having no support either from the Central or State Governments. We have been compelled to think that in the eyes of policy makers, the 8 crore traders of the Country have no significance. The Niti Aayog which is a prominent policy maker has miserably failed to even talk to traders what to say of crafting policies for the traders. It’s a fact that only 5% of the traders are able to obtain finances from the Banks and financial institutions and rest of the traders are dependent upon informal sources. There is no financial inclusion of the traders in the Country. These factors forced to the traders to think now whether it is viable to conduct businesses or not.

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