CPI-M asks govt to refrain from FDI in multi-brand retail

NEW DELHI: CPI-M today asked the government to refrain from encouraging Foreign Direct Investment ( FDI) in multi-brand retail and pharma sector, saying this could affect the commoners directly.

"The ministry is trying to allow FDI in retail. Please don't do that. It also wants to encourage FDI in pharma sector, we ask them not to do so," Saidul Haque (CPI-M) said, initiating the discussion on the demands for grants of Commerce and Industry Ministry.

Haque said a large number of people were dependent on the small retail businesses and allowing FDI will have an adverse impact.

On encouraging FDI in pharma sector, he said foreign companies will create monopoly and determine prices of medicines.

He urged the ministry to encourage exports of micro, small and medium enterprises and pay attention to dipping exports of labour intensive handicraft and handloom items.

Shashi Tharoor (Cong) raised the issue of high transaction cost of exports in the country which, he said, was playing as a dampener.

"Our transaction cost is 7-10 per cent of total exports. It needs to be reduced. It is in the range of USD 13-18 billion," Tharoor said.

He pointed out the decline in exports from Special Economic Zones and asked the government to increase the number of SEZs.

Nishikant Dubey (BJP) attacked the government for cementing trade ties with Pakistan, saying its agencies like ISI are increasing their activities in India.

When Dubey objected to India giving most favoured nation status to Pakistan, Minister of State for Commerce and Industry Jyotiraditya Scindia intervened and said, "India gave MFN status to Pakistan in 1996 and now Pakistan has initiated the process."