FDI in Retail matter of time: Finance Minister P Chidambaram @ Wharton School

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MBAUniverse.com News Desk |
July 24, 2016
Delivering the Wharton Leadership Lecture in Phildephia (US) on the evening of September 26, Finance Minister Mr P Chidambaram spoke on a variety of contentious issues including FDI in Retail and Indo-US Nuclear Deal.

Mr Chidambaram said that India will open up its $330 billion retail market to foreign investors after convincing mom and pop storeowners that their jobs are not at threat. He hinted that this will happen in not too distant a future. Said Mr Chidambaram, "In course of time their fears will be allayed and it is only a matter of time before the policy is tweaked to allow FDI in retail."  

Mr Chidambaram was speaking at the Dhirubhai Ambani Auditorium at the Wharton School of the University of Pennsylvania. "Experience tells us (organised) retail does not drive them (small retailers) out. They will reorganise themselves and thrive. But there is genuine fear that has to be allayed," he added.  

Finance Minster said that the government was concerned over costlier food items even though overall inflation rate based on wholesale prices has fallen to a near five-year low. "The rate of 3.32 per cent is perfectly acceptable, tolerable. But one component of WPI - primary articles' inflation is 7.5 per cent. Within primary articles, food is 5.8 per cent. This is a worrying inflation," he said. 

Harvard Business School alumnus Mr Chidambaram is respected for his contribution to reforms and liberalization of India since early 1990s. In his current role, he made several financial sector reforms since 2004. He has also been involved in WTO negotiations and has participated in several outreach events including the G-20 and G-7 summit.  

The Wharton School of the University of Pennsylvania -- founded in 1881 -- is recognized for intellectual leadership and ongoing innovation across discipline of business education. The school has more than 4,600 undergraduates, MBA, executive, MBA, and doctoral students; more than 8,000 annual participants in executive education programs; and an alumni network of more than 82,000 graduates.