News: Indian govt draws fire over FDI in retail

(PTI 23/05/2006) New Delhi - Left parties and Opposition BJP today launched a frontal attack on government over its move to open up retail trading to Foreign Direct Investment saying this would shrink employment opportunities.

Participating in a short duration discussion on FDI in retail in the Rajya Sabha, CPI-M member Sitaram Yechury cautioned the government against opening up of the retail sector saying it would go against the commitment made in the National Common Minimum Programme.

He said the FDI in retail should be considered only if foreign investors agreed on augmentation of domestic capacity, technology transfer and employment generation.

Expressing serious concern over already declining job opportunities, Murli Manohar Joshi (BJP) said government should keep every aspect in mind before formalising the FDI policy in retail.

He said at least 16 crore people across the country were involved in the retail trading and FDI in retail would not help in creating jobs.

Praveen Rahtrapal (Cong) said government was aware of the need of retailers. Banwari Lal Kanchal (SP) said the move would not in any way help retail traders as multinationals were coming only for profit.