Retail is internal trade and there is no need for a regulator to monitor the sector, say experts. They were participating in a debate on whether there is need to set up a Retail Regulatory Authority in the wake of MNCs entering the sector.

“Retail is a State subject and States have enough regulations, such as Sale of Goods Act and Contracts Act, among others, to monitor the sector. Another quasi-judicial body is not the answer,” Sri Ram Khanna from the Delhi School of Economics said at a panel discussion on FDI in Retail: Implication in MSMEs .

Interestingly, the Government is seriously considering constituting a Retail Regulatory Authority. The Minister of State for Commerce and Industry, S Jagathrakshakan, said in Parliament that the department related to Parliamentary Standing Committee on Commerce had recommended the constitution of a Retail Regulatory Authority to look into the problems and act as a whistle-blower in case of any anti-competitive behaviour and abuse of dominance.

Arpita Mukherjee of ICRIER said with the Government opening up the retail trade, foreign retailers could enter into technical collaboration to build a talent pool. “There is scope for the Government to partner for skilling small units to meet global standards, especially in terms of providing vocational training,” she said.

On the issue of global quality standards for sourcing goods from micro and small units (MSEs), Mukherjee said there were basic minimum international standards, but there were variations in those as well. Besides, at times, companies follow their own private standards, she added.

bindu.menon@thehindu.co.in

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