MNCs will monopolise retail if FDI is allowed: Rajnath Singh

Singh alleged that the decision on FDI had been taken in haste by the PM to resurrect his image

Foreign Direct Investment (FDI) in retail will not only compromise India’s economic autonomy, but also imperil internal security, Bharatiya Janata Party (BJP) said on Thursday.

“Almost 80 per cent of Walmart products sold worldwide are sourced from China. The same would be replicated in India if the company is allowed entry. This will only flood Indian markets with Chinese products and have a bearing on internal security,” former BJP president and parliamentarian Rajnath Singh said here.

He cautioned that if FDI in retail were allowed, multinational retailers would offer good deals to farmers in initial years, but after “monopolising” the retail sector, they would earn astronomical profits by forcing Indian farmers to sell agricultural produce at cheap prices.

“Farmers in other countries have already suffered at the hands of big retailers,” he added.

Meanwhile, Singh announced that if voted to power at the Centre, the National Democratic Alliance (NDA) government would order probe in the union cabinet approval of FDI in multi brand retail.

“It is now apparent that foreign companies are spending huge sums in India on lobbying in favour of FDI in retail, which needs to be probe,” he said.

Singh alleged that the decision on FDI had been taken in haste by the prime minister to resurrect his image after attracting negative press in some international journals.

“The prime minister has taken the decision under pressure from the US and other countries,” he said.

Singh was in town to lead the BJP’s protest over recent FDI-related proposals and a hike in diesel prices.

Singh argued against the suggestion that FDI in retail would generate 10 million jobs, by questioning what would happen to 40 million jobs in the domestic retail segment.