Chief Minister Jayalalithaa on Monday reiterated that her government was firmly opposed to the recent decision of the Centre to open up Foreign Direct Investment (FDI) in retail trade and declared it would not be permitted in Tamil Nadu.
Addressing a cross-section of leaders of the Indian industry at an MoU signing ceremony, she described FDI as a double-edged sword and the government had to handle it ‘dexterously’ as it was fraught with the danger of destroying small business ventures that provided jobs to millions of people. Recalling how she had transformed Tamil Nadu during her previous regimes (1991-96 and 2001-2006) to make it a number one State in the country, she said her government firmly believed in being very responsive to the implications of FDI. In some fields, FDI was purely based on private rationality with the underlying principle of ‘private gain at social loss.’
In September, when the Centre announced its decision on allowing FDI in retail trade, the Chief Minister had termed it an ill-advised move and called for immediate withdrawal as it was totally undemocratic and was against the interests of people.
