Stressing that Foreign Direct Investment (FDI) is a bane for India, Vikramaraja, president of the Tamil Nadu Vanigar Sangankalin Peramaippu, said that it should not be encouraged in any sector.
Speaking on the sidelines of a function to distribute cash awards to students who had secured high marks in the board examinations at an event organised by the Triplicane Traders Association here on Sunday, he criticised the recent announcement by the government to increase FDI in the defence and telecom sectors.
“Allowing FDI in crucial sectors such as defence and telecom is a threat to our national security,” he said.
When asked about FDI in retail trade, he said the move would affect about seven crore small traders throughout the country, including one crore in Tamil Nadu.
“Initially, they claimed the Multi National Companies (MNC) would set up shop only in cities with a population of 10 lakh and above. Now, we understand that MNCs can launch their business anywhere in the country. That would ruin small traders,” he added. Vikramaraja said that single brand retail with 100 per cent FDI had already affected 10 to 15 per cent of small traders in India.
Asked about the prospects of enhancement of job opportunities for locals as a benefit for opening up the retail sector to FDI, he said, “Walmart has 8,500 stores across the world, employing about 21 lakh workers. Of them, only 11 lakh are on payrolls. This is the employment credibility of Walmart.”