Karnataka CM defends move to allow FDI in multi-brand retail

BANGALORE: Maintaining that there was no "political compulsion" behind Karnataka government's decision to allow FDI in multi-brand retail, Chief Minister Siddaramaiah today defended the step, saying it would not affect retailers.


Siddaramaiah, whose government's decision comes within six weeks after the Congress regained power in the May Assembly polls in Karnataka, said the Centre had been told that "we have no objection (to Foreign Direct Investment)."

He said Union Commerce Minister Anand Sharma had written on FDI to the state government which in turn replied to it.

"I don't think there will be any problems," said Siddaramaiah, adding the decision was in tune with UPA policy that the FDI in multi-brand retail would generate employment, control prices and would not affect small retailers.

He said there were "some concerns and fears" over opening doors to FDI in multi-brand retail but there was no need for it, as at least 30 per cent of the goods and should be procured locally.

"No political compulsion," he said as he defended the step that has put Karnataka in the league of 11 other states and Union Territories which have taken a similar decision.

He said BJP's opposition to FDI in multi-brand retail was for the "sake of opposition only" as they were not in power. "Have they opposed privatisation and liberalisation," he said, at the meet-the-press programme organised by Bangalore Press Club and Bangalore Reporters Guild.

The previous BJP government in the state had opposed opening doors to FDI.