Allaying fears of Opposition parties that allowing foreign direct investment in the retail sector would bereave the farmers and traders of their livelihood, Micro, Small and Medium Enterprise Minister Vayalar Ravi on Monday said the move would be beneficial for farmers and small traders in the long run and would give a definite boost to the economy.
The government on Friday announced a raft of measures including allowing FDI in the single brand retail, allowing foreign airlines pick up 49% stake in Indian domestic carriers.
Regarding details of Congress ruled states allowing FDI in retail, Ravi said allowing FDI in retail is the prerogative of the state government but pointed out that ‘booming’ shopping complexes and multi-brand stores in the state had not affected traders.
“The claim that FDI will harm farmers and small traders is not correct. The advent of malls, retail stores and shopping complexes have not badly impacted the farmers and traders. In fact it has boosted the economy.”
About Kerala’s opposition to FDI, despite the state being governed by the Congress-led UDF, he said the decision to allow FDI in retail was the prerogative of the state government. He gave an example of how in Kochi, the commercial capital of Kerala, there are shopping complexes and retail stores but the blooming of such stores had no negative impact on the farmers and traders.