Letters: FDI in retail - Super idea

This refers to your front-page story “Limit presence, but FDI in retail is a must: Noel Tata” (June 27). Modern trade channels – hypermarkets and supermarkets – can add tremendous value to the economy by job creation and taxes. Supermarkets, being in the organised and visible sector, pay taxes diligently and they are governed by labour laws, unlike shops run by smaller traders who hire and fire staff at whim. Also, an average grocery supermodel generates about five to seven direct jobs per store of 1,000 sq ft. For every such job created, there are about seven jobs generated indirectly (transporters, drivers, loaders, watchmen and so on). Thus, for every 1,000 sq ft of retail space created, about 35 to 50 new jobs are generated in the economy.

Besides, hypermarkets assure good quality products and hygiene since they clean and grade their wares like fruit and vegetables to merchandise them. The Indian retail industry is estimated at $312 billion, with the organised sector contributing only $8.7 billion. In the US, Wal-Mart alone accounts for a vital part of the GDP. So, if the US government is not petrified of Wal-Mart, why is the Indian government so terrified of supermarkets?

Rajendra K Aneja, Mumbai

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