Somaiya Requests Pm To Stop Fdi In Retailing

Bharatiya Janata Party MP Kirit Somaiya yesterday headed a delegation of MPs and retailers to Prime Minister Atal Bihari Vajpayee to request him to stop foreign investment in retailing in India.

In a representation to Vajpayee, Somaiya said that a lot of proposals were coming from various foreign groups, international departmental stores from countries like the US, UK, Hong Kong to the commerce ministry to allow foreign direct investment in retail trade.

"They want to start departmental stores, chain linked grocery shops in India", the said the BJP MP whose party has a strong backing of the retailers all over the country. Supporting foreign investment in infrastructure, IT and manufacturing and industrial sectors, the BJP MP said that foreign investment in retailing would harm employment in India, and also the infrastructure in the "basic concept" in India.

Stating the reason for taking a delegation to the Prime Minister, Somaiya said that early this year, the government had sanctioned one project of Spencer and Company to start distribution infrastructure in the name of retailers network. This is wholesale retailers network. The delegation requested the Prime Minister to "rethink" about the government's proposal to allow such wholesalers to have retail network.

"You are aware that retail trade groceries are the major activities of traders in India. They are fully equipped and capable of doing good service to the society. Intervention and entry of MNCs and big business houses will crush this trade", Somaiya argued in his letter. He then stated that various business organisations of the country had already requested the government not to allow or open Indian market for these foreign business houses.

`Retail traders are fully equipped and capable of doing good service to the society. Intervention of MNCs and big business houses will crush this trade' Kirit Somaiya. BJP MP