FDI move ‘unfair’ to Indian retailers

Announcing her government’s decision not to allow retail outlets with Foreign Direct Investment (FDI) in her state, Tamil Nadu Chief Minister J. Jayalalithaa on Sunday asked the central government to reverse its “ill-advised” policy of allowing 51 per cent FDI in the multi-brand retail sector. In a statement, Jayalalithaa said: “I demand that this ill-advised move of the government should be reversed as it will not serve to bring down inflation or improve market efficiency.” Citing reports that put 90 per cent of India’s total retail business in the unorganised sector, Jayalalithaa said the new FDI policy would render 40 million to lose their livelihood. As most of them are not well educated they would remain unemployed. According to her, the domestic manufacturing and services sectors will take a serious hit and the retail trade will be taken over by MNCs dominated big retail giants. This is not good for our country, she said. “I am constrained to state that my government will not allow the multi brand global players as permitted under the new policy to set up their hyper markets in Tamil Nadu,” Jayalalithaa declared. Jayalalithaa termed the centre’s decision of allowing 51 per cent FDI in multi-brand retailing and 100 per cent in single brand retailing as a “rude shock to the millions of traditional retail vendors.”