FDI in retail will harm SMEs: BJP

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SME Times News Bureau | 21 Nov, 2011
Threatening to launch a nationwide agitations against the central government's move to allow foreign direct investment (FDI) in multi-brand retail, Bharatiya Janata Party (BJP) leader and Public Accounts Committee chairman Murli Manohar Joshi Sunday said it would harm country's Small and Medium Enterprises (SMEs).

Speaking to the media in Bhubaneswar, Joshi said the Indian retail market has been growing on its own and the sector does not require FDI or big domestic investment.

He said if the FDI in multi-brand retail was allowed, foreign companies like Walmart and Carrefour will sell essential commodities like vegetables and foodgrain.

"The experience all over the world is totally against it. Where ever these people have gone, the competition has destroyed the small shopkeepers and it has resulted in a total loss of jobs," he said.

"India already is having a large number of unemployed people. If this big capital in retail comes, there will be further addition to unemployment," he said, adding retail was the second largest employment generating area.

He also accused the government of spreading false propaganda that it will help the farmers and producers.

"Neither the consumers are benefited, nor the farmers. This is a false propaganda. There is absolutely no evidence that farmers have been benefited," he said.

If the farmers in other agriculture producing countries have benefited, it's because they have been heavily subsidised by their respective governments. "In India, farmers are not subsidised to that extent" he added.

"I challenge the government to prove that it benefits the farmers or the consumers," Joshi said, adding his party has planned to protest the move across the country and in the parliament.