At a time when the government and regulators are emphasizing inclusion and increase in credit delivery to those without access to formal sources of finance, private sector banks are found to have low credit-deposit ratios in rural areas as compared to public sector counterparts. In a recent interaction at the state-level bankers committee (SLBC) meeting, in which Reserve Bank of India governor D Subbarao was present, bankers brought this to the...

-The Times of India Promotion of organized retail and contract farming to improve farm production and modernize the agriculture supply chain as well as direct marketing initiatives are among the highlights of the report on consumer affairs prepared by a group of chief ministers chaired by Gujarat CM Narendra Modi.  In a report submitted to Prime Minister Manmohan Singh in March, the committee headed by Modi prioritized reducing farm gate to retail...

-The Hindu   In a bid to break the impasse over foreign direct investment (FDI) in multi-brand retail, the government made a vain attempt on Wednesday night to persuade the Opposition to tone down the wording of its motion. But it was told in categorical terms that the demand for a rollback of the decision was non-negotiable. The Opposition stance was conveyed by the Working President of the National Democratic Alliance (NDA) and...

Farmers, a holy-cow constituency considered more valuable than small traders to the political class, have begun to ask uncomfortable questions to those opposing foreign direct investment (FDI) in retail. Several farmer groups, some of them led by politicians with ties to the Congress, have asked why some parties are standing in the way of a measure that is expected to reduce the clout of middlemen and increase farm earnings. Although Prime Minister...

Global retail chains looking to set up shop in India may face several challenges such as delay in the implementation of goods and services tax and restrictions imposed by the Agricultural Produce Marketing Committee (APMC) Act, besides political opposition. These hurdles can be roadblocks in providing real benefits to farmers and consumers as intended by the government in opening the multi-brand retail sector to foreign direct investment. “GST (goods and services tax)...