To say Wal-Mart will buy India is blowing FDI topic out of proportion: Kapil Sibal

NEW DELHI: Reacting to the hard-line taken by Leader of Opposition in Lok Sabha Sushma Swaraj against FDI in multi-brand retail, Kapil Sibal on Tuesday said that the ultimate choice on FDI rests with the state government.

Sibal hit out at Swaraj for her comment on Wal-mart. "To say that Wal-Mart will buy India is blowing the topic out of proportion," he said. "We can be emotional and deliver big speeches, but we need to study the government policy first," he added.

He questioned how the opposition could stop state chief ministers from implementing FDI in retail. "How is that constitutional?" he argued. Sibal went on to clarify that foreign retailers will only be permitted in cities with over 10 lakh population. India has 53 such cities, he said.

Earlier in the day, Sushma Swaraj hit out at the government for not attempting to create a consensus on the matter. Taking on the sourcing policies of McDonald's & PepsiCo in Lok Sabha, Swaraj said, "Ask McDonald's about their fries. They never buy potatoes from local Indian farmers, saying the potatoes are too small here."

Swaraj said that MNCs will very easily give assurances on FDI but will not stick to them. "Wal-Mart employs maximum of 214 people per store. In this scenario how will 40 lakh be employed in these retail stores?" asked Swaraj.

According to Swaraj, FDI in retail will create a 'monopolistic set up'. "We women go shopping and know that small shopkeepers give us a good deal, we don't get cheated. Big monopolies cheat," she argued. "Competition is always in the interest of the consumers, monopoly is not," she added.

Swaraj said that 90% products sold will be made in China and there will be employment for Chinese. "In India crores will be out of work; there will be dark homes and shiny malls," added Swaraj.