FDI IN RETAIL
In the wake of second generation economic reforms the UPA II Government has given its approval for 51% FDI in multibrand retail and 100% FDI in single brand retail. This decision has paved the way for the multinational retail giants like Wal-Mart, Teso and Carrefour who were waiting for last two decade to capture retail market worth 450 billion dollar in India.
The Cabinet note states that the investment will be made in processing , manufacturing , distribution , design improvement, quality control, cold chain, Warehouse and packaging among others. The retail chains will be allowed only in the cities with a population of more than 10 lakhs as per 2011 Census. There are 53 cities in India having more than 10 lakh population as per 2011 Census. The Government claims that with the opening of multibrand retail the food inflation will be controlled as it would contribute to savings to the foods which perishes on account of inadequate infrastructure .Farmers will also be benefited as their products will be procured directly from them and enable them to secure remunerative price. Huge investment in retail sector will provide more employment opportunities in agricultural sector and at least 1.7 million Jobs will be created in organized sector within 5 years and indirect employment generated on the supply Chain to feed this retail business will add millions of Jobs-claims the Government spokesman.
On the other hand all the opposition parties i.e. BJP and left including some govt allies like T.M.C. , D.M.K. ,S.P. & B.S.P have opposed the move of Government saying that the self employment of lakhs of retailers will be snatched and they will be deprived of their livelihood . After some time farmers and consumers both will be made Victim of monopoly of these multinational retailer giants. Coming in the backdrop of a persistent high inflation, growing Joblessness and agrarian distress, the decision shows the utterly callous and anti people character of the UPA II Government.
This is nothing but selling the house silver to subscribe the corporate sector and undermine our economic sovereignty to international finance capital . Allowing Foreign Direct Investment in multibrand retail would adversely impact the retail sector which is growing and put the country's entire food chain system into the hand of foreign firms. Creation of storage and Cold Chain is the responsibility of Government and outsourcing the jobs to foreign companies would endanger the Country's food security.
So keeping in view the adverse impact of FDI in retail sector and strong opposition by entire opposition parties and some of government allies and all Central Trade Unions, Government should withdraw the decision of FDI in retail sector so that the livelihood of lakhs of retailers can be saved.
--
M.Krishnan
Secretary General NFPE
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