The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has expressed its concern over the Inter Ministerial Group's (IMG) recent recommendation that Foreign Direct Investment (FDI) be allowed in multi-brand retailing.
In a statement issued on Saturday, N.S. Srinivasa Murthy, president, FKCCI, said the Union Government's claim that this would help in “taming inflation”, is specious because it had all along been claiming that the current inflationary situation is due to high global inflation.
By sourcing commodities at a higher price in the global market, they would only add further to the existing inflationary pressures, he observed. The FKCCI, Mr. Murthy said has been opposing the move to allow FDI in the retailing business ever since the Department of Industrial Policy and Promotion “raked up the issue of allowing FDI in multi-brand retailing.” He warned that the move would result in “a huge loss of employment,” since the retailing sector is the second largest employer, after agriculture.
Instead of opening up the Indian retail sector to foreign companies, the Government should “strengthen the existing Agricultural Produce Market Committees”, he said.