Case for retail FDI: Praful Patel cites Thums Up's popularity over Coke

NEW DELHI: Hitting out at the opposition for their arguments on FDI in multi-brand retail, Praful Patel on Wednesday said that with the opening of outlets by KFC and McDonald's has led to improvements in Indian chains like Bikanerwala & Haldiram.

He also said that owing to competition, shops in small villages have also seen an improvement. In an attempt to press his point that FDI will not harm local products Patel cited the example of Thums Up being more popular than Coca Cola.

"Trade is a two way relationship, when big investors from India profit in other countries the same will be expected of India," he said.

Multinational food majors McDonald's, PepsiCo and KFC got a taste of realpolitik on Tuesday when Parliament started a debate on allowing FDI in multi-brand retail where the ruling front and opposition traded charges that left the US firms upset and dumbfounded.

On Tuesday, taking on the sourcing policies of McDonald's & PepsiCo Leader of Opposition in Lok Sabha Sushma Swaraj said, "Ask McDonald's about their fries. They never buy potatoes from local Indian farmers, saying the potatoes are too small here."

McDonald's refuted BJP leader Sushma Swaraj's allegation that the fast-food giant does not source even basic commodities such as potatoes from within India while PepsiCo issued a clarification that it is the largest procurer of potato in the country.

In a Parliament debate on allowing Foreign Direct Investment (FDI) in multi-brand retail, Swaraj hit out at the government for not attempting to create a consensus on the matter. On behalf of the opposition asked the government to withdraw the decision in national interest fearing it would render retailers jobless, impoverish farmers and hurt consumers.