The BJP on Wednesday said it was against the entry of foreign direct investment (FDI) in the retail sector in India. This comes a day after the department of industrial policy and promotion (DIPP) released a discussion paper on it.
?The BJP expresses its reservations on opening up multi-brand retailing to FDI. There are nearly 10 crore enterprises (SME and trades) in India and are growing 15% annually. This sector has grown without any formal government support,? said BJP spokesperson Nirmala Sitharaman.
She also highlighted that a parliamentary committee comprising 42 MPs from various political parties and headed by Murli Manohar Joshi had extensively studied the issue and proposed a blanket ban on multi-brand retail foreign direct investment. ?What is the government?s view on this parliamentary committee?s report?? she asked.
The party questioned the UPA government?s apparent ?hurry? to open up the sector and said that ?slowly but surely? steps are being taken in this direction.
?Initially the cash-and-carry business was opened with the intention of allowing FDI in wholesale trading. There were instances where this business actually became a retail trade in the garb of cash and carry. There after single brand retailing was allowed through outlets. The next step in this direction was to allow Indian companies to set up retail stores ostensibly without FDI but actually granting permission for Indian companies to be in the front office with a foreign investor at the back office, in the garb of cash and carry,? said Sitharaman.
The party insisted that high unemployment, especially unskilled unemployment rates, made it imperative that Mom and Pop stores be allowed to function. The party said it was forming a five-member committee to go around the country and elicit the view of state leaders on the issue.