Commerce minister reaches out to MPs on retail FDI

Commerce minister reaches out to MPs on retail FDI

New Delhi: In the face of stiff opposition in Parliament to foreign direct investment (FDI) in retail, commerce and industry minister Anand Sharma on Monday sought to reach out to members of parliament (MP) and state chief ministers (CM) and appealed to them to rise above “petty" partisanship on the issue.

“I felt it is my duty to dispel some apprehensions expressed by certain political parties," he said in his letter to members of both the Lok Sabha and Rajya Sabha.

The parties should rise above “petty" partisanship and strengthen Indian political systems, he said, adding that wide consultations were held before the decision was taken.

The government has come under attack on allowing 51% FDI in the multi-brand retail sector dominated by small-size kirana stores to attract global giants like Walmart to open stores in India.

Both the opposition and UPA allies Trinamool Congress and DMK have demanded a roll-back of the decision, which was taken by the Union Cabinet on 24 November.

Sharma said, “In formulating this policy, we were conscious of the livelihood concerns of millions of small retailers."

Studies on the global experience with foreign investment in multi-brand retail revealed that even in developing countries such as China, Brazil, Argentina, Singapore, Indonesia and Thailand, local retailers have found innovative ways to co-exist with organized retail chains.

Sharma said the government was also mindful of ensuring food security for the poorest of the poor, retaining the first right to procurement of food grains. The first right would rest with the government public distribution system, he said.

On concerns over the predatory pricing that may be resorted to by multi-national retailers, he said the competition commission would ensure that such practices are scrutinized.

“I have specially discussed the matter with the chairman of the competition commission to bring in a regulator to ensure necessary checks and balances," he said.