(This story originally appeared in on Dec 02, 2017)

NEW DELHI: Amid demand from industry leaders, who were rooting for the opening up of multi-brand retail in the country, commerce and industry minister Suresh Prabhu on Friday said there is a need to adopt policies that will help incoming foreign retailers work hand-in-hand with existing kirana stores “Earlier, there was fear among domestic retailers, when corporate houses entered,” said Prabhu. “But now, there is a need to understand the complementarity between those already in business and those who will enter with more capital. How do we make the end consumer benefit? Public policy is all about that.”Currently, the FDI policy allows overseas companies to own up to 51% stake in an Indian multi-brand retail company. However, the chatter among industry leaders to allow 100% FDI in multi-brand retail has been growing louder. “Retail in the country is bleeding,” said Himanshu Gupta, CFO of Fortis Healthworld. “FDI is definitely the needof the hour, as it will bring in more funds for the industry.”Others said kirana stores and top global retailers are already enjoying a symbiotic relationship as many mom and-pop stores buy stocks from wholesale businesses of Walmart and Metro Cash & Carry. Under Indian FDI rules, 100% FDI is permitted in the wholesale business.“FDI in multi-brand retail is not going to affect kirana stores in the country,” said Mukesh Lakhotia, CFO (NBD) of Godfrey Philips India. The BJP government is, however, reluctant toopen up FDIin multi-brand retail, fearing a backlash from traders, a key constituency for the party. This section has already been critical of the government for demonetisation and the recent rollout of Goods and Services Tax (GST).Prabhu, speaking at the CII National Retail Summit 2017 held in the Capital, said the government is in the process of identifying retail as one of the biggest growth sectors in India, as growth in retail will lead to growth in other sectors, including manufacturing.“The opportunities in retail are immense. It will lead to job creation,” said Prabhu. “India can manufacture many things but they have to be sold through retail.”