Cong doesn’t support FDI in multi-brand retail: Left to govt

NEW DELHI: Left Parties have asked the Centre to desist from allowing Foreign Direct Investment in multi-brand retail trade, claiming there was resistance even within Congress to such a move.

“It is strange that the United Progressive Alliance government is contemplating this step when Congress itself has taken a stand against the entry of foreign companies in retail trade as stated in its resolution in the AICC session held in Hyderabad in 2006,” CPM and CPI said in a joint statement issued here.

The commerce and industry ministry is planning to propose 100% FDI in multi-brand retail, opening the doors to retail giants like Wal-Mart . However, the ministry will propose strict local sourcing requirements and mandatory investments in backward linkages.

The Left, which has consistently opposed FDI in the sector, said retail trade in the country employed lakhs of people, whose livelihood would be ‘jeopardised’ if multinationals like Wal-mart and Tesco were allowed entry.
“A wide spectrum of political parties , retail trade associations and public opinion is against such a move. The UPA government should desist from allowing FDI in multibrand retail trade,” they said.

There have been reservations within Congress on the issue. Congress president Sonia Gandhi had cautioned the UPA in 2007 saying it should examine the impact of transnational super markets on the livelihood security of small scale operators before taking further decisions on FDI in retail.

Besides the Left, BJP too has opposed opening up of multi-brand retail . A parliamentary standing committee headed by BJP leader Murli Manohar Joshi had recommended a complete ban on FDI in retail. At present there is a complete bar on foreign investment in multi-brand retail, while up to 51% is allowed in single brand retail.