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Tuesday, 22 November 2011 |
The Indian government’s plan to allow foreign direct
investment (FDI) in multi-brand retail sector has stirred political debate. Interestingly, the Congress, the major UPA partner is itself not sure how far to go with party members divided on the issue. While one section favors going ahead, there are others like Congress Working Committee member G Sanjeeva Reddy, who oppose it.
The BJP, the biggest opposition party in Parliament is completely opposed to FDI in multi-brand retail. Similarly, the Left parties, have always been against the move. D Raja of the Communist Party of India feels it will adversely affect employment of four crore people in the retail trade and ultimately their dependents. Therefore, affect close to 20 crore people. It will also impact the 10 per cent of GDP contributed by retail sector. Also opposed to it is Mulayam Singh Yadav’s Samajwadi Party. Party spokesperson Mohan Singh argues, millions of small retailers in will be finished off with the entry of foreign players and MNCs will get a stranglehold on the economy.
UPA member the Nationalist Congress Party (NCP) is in support of the move. As party spokesperson D P Tripathi says they support competition and hence are for the FDI in multi-brand retail. However, they want studied and restricted levels of FDI and want the interests of small shopkeepers and retailers protected. Interestingly, no party, either in the government or in the opposition, has said that FDI in retail could be a consumer-friendly move because competition would bring down prices. Nor is any political group overtly ready to court the young and upwardly mobile urban consumer in this regard. |
