Writes to Manmohan not to proceed with the move without a ‘wide-ranging consensus’
Ahead of Parliament’s monsoon session, a united Opposition seems all set to jeopardise Prime Minister Manmohan Singh’s controversial plan to push foreign direct investment (FDI) in multi-brand retail.
While the Left and the Samajwadi Party have written to Dr. Singh to build a “wide-ranging consensus” before proceeding on the issue, key constituents of the National Democratic Alliance (NDA), including the Bharatiya Janata Party (BJP) and the Janata Dal (United), are also in touch with the Left and other Opposition parties to formulate a joint strategy against the move.
“We urge the government not to open up the retail trade to FDI any further. Political parties across the spectrum are opposed to this move. In the absence of a wide-ranging consensus, we request you not to proceed with this decision,” says the letter to the Prime Minister signed by Samajwadi Party president Mulayam Singh Yadav, and general secretaries of CPI (M), CPI, AIFB, RSP and JD(S) — Prakash Karat, S. Sudhakar Reddy, Debabrata Biswas, Abani Roy, and Danish Ali.
The letter further says: “The Indian retail sector is the second largest employer in the country after agriculture. It employs over 4 crore persons. Most of these are small unorganised or self-employed retailers. Entry of MNC supermarket and hypermarket chains would cause severe displacement of these small and unorganised shopkeepers and traders…In a situation when employment growth has slowed down according to the National Sample Survey data of 2009-10, the entry of foreign supermarkets would further aggravate the employment situation.”
Stating that any move to allow FDI in multi-brand retail would be “strongly resisted,” Mr. Karat told The Hindu that last time when the proposal came the government had promised that the Opposition would be consulted and consensus reached before going ahead on the issue.
“Several State governments and most political parties were opposing it…they share the view that the government should not proceed before it takes Opposition parties into confidence,” he said.
Mr. Karat said they were in touch with the NDA parties which also oppose this move. “We have talked to JD (U) leader Sharad Yadav whose party is against it. We are also in touch with several other parties who are with us. How the Opposition would fight against it would become clear only before Parliament session…we will strongly resist this,” he asserted.
Notably, apart from the Samajwadi Party that supports the UPA government from outside, the ruling coalition’s key constituent — Mamata Banerjee’s All India Trinamool Congress — is also against FDI in multi-brand retail.
Keywords: FDI, multi-brand retail, UPA, controversial plan, NDA
Seeing only negativity here , I can't help but try to bring things to balance . We can't really shun FDI in retail just because some parties claim it will hurt us . Of course there will be some casualties if competition rises but to think that a major chunk of Indian retail market will be wiped out is bordering on senselessness .Did the cropping up of Reliance Fresh or Big Bazaar make your vegetable vendors and kirana stores diisappear ? No they did not , and it would be foolish to think that a foreign entity like walmart that doesn't even know our market completely can do what our own giants could not . Or do we really have that little faith in our own countrymen .
Moreover , Foreign entities won't have free reign in our country . No , the start will be only made from a few cities for a few years - and even then they will probably have several restrictions concerning expansion upon them . So why all the hullabaloo ?
FDI in retail does improve employment opportunities in India. Sure,
some small traders would have to close shop, but the consumer would get
the innumerable benefits, and an efficient supply chain would benefit
the producers as well.
It is a matter of grave concern that there is an attempt to allow FDI in multi-brand retail trade. It seems that a section of bureaucrats and political functionaries are working day in and day out to somehow pressurise the government to allow FDI in multi-brand retail trade. We have to appreciate Samajwadi Party president Mulayam Singh Yadav, and general secretaries of CPI (M), CPI, AIFB, RSP and JD(S) — Prakash Karat, S. Sudhakar Reddy, Debabrata Biswas, Abani Roy, Danish Ali and others for vehemently opposing the government's move.
Studies show that Indian retail trade is one of the most vibrant sectors of the Indian economy and it is growing healthily at more than 20 percent per year. For instance, between 1993-94 and 2009-10, employment in trade and hotels has grown sharply, while employment in farming has declined significantly, and in manufacturing it remained sticky. It seems that those losing jobs or unable to earn enough from agriculture or manufacturing
FDI in retail, is to be strongly opposed in view of its effect on the
local small scale business-men and affects our self-employment
potential.
Congratulations to you all taking a bold step with the millions of
Indian Retailers, who will be the victims if FDI is allowed in India.
Is GOI more loyal to India or to MNCs and Obama? We should mobilise
the retailers all over India against this displacement and murder of
millions of retailers in India. This was what happened when GOI
allowed MNCs of Softdrinks,to the miilions of colour soda vallas
cycled all over India. Is this Globalization, Development, Progress
and India Shining?
Thomas Kocherry, thomasksa@gmail.com, www.thomaskocherry.com, +91 936
064 5772.
That it will cause unemployment to 4 crores working in the retail sector is an underestimate. It also overlooks the fact that most of the labour and employees working in small and medium sector factories which today supplies products to these retailers will also be thrown out of jobs. Because such products will not be sold by these new Supercentres of Walmart and others who will import the cheap substitute products from China. Then the unemployment could be another 15 to 20 crores which may be more accurately estimated by FICCI,ASSOCHAM or FAPCI who today are keeping silent for reasons best known to them.
I concur with these parties decision to oppose reforms. The only beneficiaries such reforms would be the MNCs, their share holders and most importantly the chinese companies.
These hypermarkets have kill umemployment issues in the areas where they open up. Youtube has a lot of videos highlighting these issues.
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