BJP to oppose any FDI in multi-brand retail

The Bharatiya Janata Party has decided to strongly oppose any opening of multi-brand retail to foreign direct investment (FDI), both at the Centre and in the states where it rules.

Earlier, its government in Gujarat had indicated it was for the change, subject to some protection for small buisnesses. But the party now says such a decision would wipe out the domestic retail sector.

The Union government has almost made up its mind to push FDI in multi-brand retail, as is clear from the letters from the cabinet secretary to all chief ministers, asking for their views. The commerce ministry has already said state government should not be allowed to make any new conditions and would have to accept the policy as made by the Union.

“We will oppose the decision of the government both at the Centre and by the state governments. The decision of the government would not only affect our domestic retail sector but would also destroy domestic manufacture because the foreign companies would be able to buy products from other countries and flood our markets with imported goods made available at these retail chains,” said a senior BJP leader who is among the policy makers in the party.

Senior BJP leaders say the party cannot stop the government if it had made up its mind but they’d ask state governments to oppose the decision at the highest level.

BJP chief ministers P K Dhumal (Himachal) and BS Yeddyurappa( Karnataka) have that argued that foreign companies will wipe out smaller retailers, who have neither the money nor the expertise to compete.