Union Minister of Commerce and Industry Piyush Goyal on Thursday categorically ruled out the entry of multi-brand retailing in India, saying that such a move would destroy pop-and-mom stores like that of the US.
Speaking at an event, Goyal said that while India is open to economic reforms to drive accelerated growth, the government remains firm on protecting the nation’s network of small, family-owned businesses, often referred to as "mom-and-pop" stores.
"I want to make it loud and clear that there will be no change in our policy on multi-brand retail. America has suffered the consequences of big tech and large retail, leading to the near annihilation of mom-and-pop stores across the country," Goyal said.
He explained that while the US can absorb the impact of large retailers due to its smaller population and broader job opportunities, the same would not be true for India.
"India has nearly 100 billion small mom-and-pop stores spread across the country. In every village, there are 10 to 12 shops selling different products or providing services. We believe they play a very important role," Goyal stated.
The minister also expressed support for these small businesses to be integrated with technology and e-commerce but made it clear that the government does not plan to change the existing rules for online platforms.
"We are happy if they get integrated with e-commerce or withstand the business practices of e-commerce companies. But we are not looking at changing the rules for e-commerce," Goyal said. "Other than that, there is no sector left where we have any restrictions whatsoever."
Regarding foreign investment, Goyal pointed out that India has already opened its doors to significant foreign stakes in sectors like defence and space.
"Even in defence, 100 per cent foreign ownership is allowed. Space has been opened up to foreign ownership," he said. "Money can move in and out pretty much easily, though a process is required to ensure no money laundering or tax evasion occurs."
Goyal concluded by stressing that no foreign investors have raised concerns about India's policies. "Today, nobody is telling me that they are not investing in India because of any of the government policies," he said.
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