Govt launches campaign to sell FDI in multi-brand retail

 Under attack from the Opposition and UPA ally Trinamool Congress on allowing global retail chains in the Indian market, the government today launched a campaign to sell advantages of FDI in multi-brand retail.

In a full page advertisement in newspapers, the Commerce and Industry Ministry said foreign direct investment (FDI) in multi-brand retail will help farmers, create more jobs and benefit consumers.

It said there are several myths on the issue. These include that kirana and retail stores will lose and retail sector will be controlled by foreign stores.

On the other hand, the reality is that domestic retailers will benefit from sourcing their requirements from wholesale cash and carry store at a discount, it said.

The government said in countries like China, Thailand, Indonesia, Brazil and Singapore, where there are no caps on FDI, small retail stores have flourished.

The government advertisement said that there is another myth that FDI in multi-brand may result in job losses. "Contrary to this mistaken belief, FDI in multi-brand retail will generate 10 million new jobs."

It said that it is also a fiction that farmers would be exploited and lose their fields and crops to foreign investors. On the other hand, "farmers will receive better remuneration for their produce".

In a bold decision, the Cabinet on November 24 decided to allow 51% FDI in multi-brand retail and removed the 51% FDI cap on single brand retail.