CAIT opposes 100 per cent FDI in single brand retail, condemns government’s 'love' towards MNCs

A trade body today strongly opposed the Centre's decision to allow 100 per cent foreign direct investment (FDI) in single brand retail through the automatic route.

Published: 10th January 2018 02:36 PM  |   Last Updated: 10th January 2018 04:12 PM   |  A+A-

Image used for representational purpose only

By PTI

MUMBAI: A trade body today strongly opposed the Centre's decision to allow 100 per cent foreign direct investment (FDI) in single brand retail through the automatic route.

The Confederation of All India Traders (CAIT) said the move will facilitate easy entry of MNCs (multi-national companies) in the retail trade.

At present, FDI up to 49 per cent is allowed under automatic route but any investment beyond the limit required government approval.

The approval through automatic route is aimed at further quickening the FDI clearance process and many foreign players may now enter the Indian market this advantage of this.

In a statement here, CAIT, said "100 per cent FDI in single brand retail through the automatic route will facilitate easy entry of MNCs in the retail trade and also violate the poll promise of the BJP."

Terming it as a "serious matter for small businesses", the trade body claims the move will hamper the welfare, upgradation and modernisation of existing retail trade.

The trade association said this was a "brutal move" on the part of the government and such a step would render a large number of people jobless.

Earlier, foreign investments above 49 per cent required the government's approval along with subject to certain condition like mandatory local sourcing from micro and small and medium businesses (MSMEs).

The government, on the other hand, has pushed the proposal with a view to provide an investor-friendly climate to foreign players and in turn attract more FDI to boost economic growth, which it expects will create jobs.

After 100 per cent FDI in single brand retail was allowed in 2014, many global players like Ikea and Nike have entered the Indian market.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.