Licensing regime considered in India

 Source: Planet Retail 19 June 07

According to reports in the Indian press, the government is planning a licensing regime to regulate grocery, fruit and vegetable retail in the country. It is understood that any outlet over 929 square metres will be obliged to seek a licence from the local urban body administering that area. The objective is to check the unfettered growth of grocery retail and protect small kirana stores by restricting the mushrooming of organised retail outlets in a particular catchment area. When implemented, the licensing policy will have a direct impact on new hypermarket outlets now being planned by the likes of Reliance and Bharti. The retailers would only be allowed to operate in a specified catchment area, minimising the scope of competition between them and local kirana shops.

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