Traders oppose govt's proposal on FDI in multi-brand retail

The Confederation of All India Traders (CAIT) today strongly opposed the Inter-Ministerial Group's (IMG) proposal to open up multi-brand retail to foreign investors and said that the arguments in favour of it were "totally irrational and illogical".

"The Confederation on All India Traders has strongly contested the proposal of the IMG to allow FDI in multi-brand retail.... [the argument that] FDI in retail will tame inflation is nothing but an imaginary exercise by the people who have the tendency to ignore the ground realities," CAIT said in a statement.

Concerned over rising inflation, the IMG had a few days back suggested allowing foreign investors in multi-brand retail, besides making changes in agriculture marketing laws to check the steep rise in prices.

"We are taking a clear position on FDI in multi-brand retail. Of course, it is a recommendation, not policy," Chief Economic Advisor and IMG Chairman Kaushik Basu had said.

Concerned over high inflation, the government in January had appointed a high-level inter-ministerial group to suggest steps to tame the rapid escalation in prices.