FDI to ruin small retailers: BJP

"FDI in retail will have an adverse impact on crores of small retailers, and is expected to ruin them financially," In-charge National Publicity Cell BJP, Nalin Kohli said in a conference here this evening.

India has a huge saving rate and foreign companies want to invest in retail business to tap this saving, he said.

The savings get invested in productive assets through banking system and also act as cushion during hard times for a common Indian household, he added.

The foreign business companies want Indian society to become a consumer society on the pattern of western countries and live and spend on credit and exhaust the savings, he said.

The assertion of the Congress that FDI in retail would mean construction of roads and cold storage in rural areas is misleading, he said adding, "By giving due incentives to local entrepreneurs, construction of roads and coal storage can ensured from them", he said.

"It is also incorrect to say that farmers would get higher remuneration for their produce", he said.

This decision has been taken by the Congress to divert the attention of the public from the scams in which it has been involved, Kohli said.