FDI in retail trade is not permissible under the existing policy on foreign investment in India. The Wal-Marts franchisee agreement with Bharti Enterprises is an attempt to circumvent existing policy regulations to gain a foothold in the Indian market, a statement of the partys politburo said.
Reiterating its earlier stand that allowing FDI in retail sector will create massive unemployment, the party said, What is urgently required is a strong regulatory framework for the domestic organised retail sector, which is expanding at a rapid rate. The party also warned it would venture into protest measures to prevent the entry of Wal-Mart into India.
This is a clear violatin of Common Minimum Programme and the government should intervene, a senior CPI(M) MP told FE.