Retail stakeholders to jointly oppose FDI in retail

Jalandhar, October 9, 2012: Consensus emerged at a day-long National Joint Meeting on Foreign Direct Investment (FDI) in multi-brand Retail in India as participants from all sections of the retail sector today strongly warned the Government either to roll back the notification of FDI in Retail or prepare to face a nationwide agitation against FDI in Retail.

The joint meeting unanimously passed a resolution which speaks that FDI in Retail will a nightmare for Indian economy and detrimental to the domestic players of all sections including farmers, hawkers, transporters, traders, SMEs, consumers and other sections of retail trade.

The joint meeting held at New Delhi today was attended by more than 25 leading organisations of traders, farmers, hawkers, consumers etc. Leaders of different sectors of retail trade from all over the country attended the convention.

Initiating the meeting Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) raised a constitutional point that though the Union Government is empowered to issue executive notification for allowing FDI in Retail but if some other government comes to power, it will have equal right to de-notify the order since it has not passed by the Parliament. He urged all political parties to declare their intent and made this point a part of their manifesto for next general elections.

Participating in the debate, Dr. Murli.Manohar Joshi, BJP Leader, described the small farmers and small traders as the economic spinal cord of the country. The hawkers, transporters, SMEs of the country will also not be spared by the hammer of MNCs. Describing FDI in Retail as a foreign attack on India’s economy and retail trade, Dr. Joshi said that FDI is the biggest root of corruption and its entry in India should be opposed with all might. He also mentioned that no industry will flourish after the entry of MNCs as they will swallow the small time shops because they are largely the biggest middleman of cheaper goods outsourcing from over the globe.

Basudev Acharya, CPM MP while joining the meeting said that permission to FDI in Retail means monopoly of MNCs on our retail trade. All should fight unitedly to oppose and discourage policy of UPA government to safeguard our dignity and freedom for trade. He further said that our stakeholders are capable of setting up anything indigenously be it infrastructure or cold storages, then why allow global retailers to invade our economy.

The leaders of various stakeholder organisations were of the unanimous view that “it will generate un-even level playing field. Let the government instead of inviting FDI in Retail, the government should work out a comprehensive strategy to upgrade and modernise the existing retail trade which could meet all requirements of modernise retailing and also to meet the global challenges in quality and competitive prices.”

They further said that Indian economy is not a good generator of jobs as it creates only 17 lakh jobs a year, not adequate for our growth in population. Indian retail having little entry barriers and limited skill acts as a Safety Valve. Closure of small shops will lead to mass unemployment as MNC’s business model is “Buy Lowest-Sell Highest”.

The leaders also said that India’s Employment Structure according to NSSO is Self Employed 51%, Regular Wage Employment 16% and Casual Labour 33%.

“Upto a point, the consumer will be benefitted. But once MNCs dominate, the consumers also become captive to them as their game is of Concentration and Domination,” added the leaders.

Terming FDI in Retail as a foreign devil, the leaders in the meeting collectively issued a Declaration to fight jointly to oppose FDI in Retail tooth and nail and will launch a nationwide campaign against FDI in Retail. A Maha Rally will be organised at New Delhi of all sectors of retail trade and the date of such rally will be announced shortly. It was also decided to hold protests in form of protest march, dharna, burning of effigies of FDI etc. all over the country. Seminars and meetings will be hold in each state countrywide. The delegations of stakeholders will meet the Prime Minister and leader of Opposition both in Rajya Sabha and Lok Sabha as also the leaders of all political parties and Chief Ministers of different States.