FDI in retail scares Indian bulk market

New Delhi: With the debate on Foreign Direct Investment (FDI) in multi-brand retail refusing to die down in the Parliament, the trader associations have alleged that foreign companies making an entry into the retail sector will also gulp the bulk market along with domestic retail industry.

Alarmingly, more than 6 crore small and big companies may drastically suffer the aftershocks of the FDI being allowed in Indian retail sector.

Indian Trade and Industry Association President Shyam Bihari Mishra questioned, “Will the foreign companies be able to understand the relationship between a consumer and a merchant?”

Trade unions have sped up their preparations to impose a nation-wide bandh to protest against the FDI in multi-brand retail sector, drawing support from the opposition parties.

According to Mishra, the move claiming to benefit farmers is just a myth as international retail companies will purchase agricultural products from farmers with minimum land holding of 10 hectares. Expressing shock, he added, there are just a few farmers with such a large amount of land holding in our country.”

Mishra said, the Centre must issue a White Paper in this regard and must mention the achievements of foreign companies in the retail sector and their social interests.

The foreign companies to come up in retail sector will bring with them high end transportation conveyance based on advanced technology. They will use machines for loading and unloading goods leaving our porters unemployed.

Mishra also accused the Centre of interfering in the state jurisdiction. The states cannot debar the foreign companies from entry in an open trade agreement with India, as the matter can be complained to the World Trade Organisation.

Posted in: FDI, foreign direct investment, QFI, retail