100% FDI in retail will harm retailers, shopkeepers: CPI-M
New Delhi, Jan 10 : The CPI-M on Wednesday denounced the government decision to allow 100 per cent FDI through the automatic route in single brand retail trade, warning this will have “harmful consequences” for domestic retail traders and shopkeepers.
Until now, Foreign Direct Investment up to 49 per cent was permitted under the automatic route.
“This step to liberalise FDI in retail trade will have harmful consequences for domestic retail traders and shopkeepers,” a statement from the Communist Party of India-Marxist said.
“This measure indicates that the Modi government is moving towards allowing FDI in multi-brand retail trade,” it added.
The CPI-M pointed out that the BJP, while in opposition, was opposed to the entry of foreign companies into retail trade. “Now being in the government, it has hypocritically reversed its position.”
The CPI-M also strongly opposed the decision to allow foreign airlines to invest up to 49 per cent in Air India.
“Having taken the decision to privatise Air India, the Modi government is now moving towards handing over Air India to a foreign airline.”
The CPI-M asked the government to heed the recommendation of the Parliamentary Standing Committee on Transport, Tourism and Culture which asked the government to review its decision on privatization of Air India and provide five years to revive the airline with its debt written off.