BJP opposes govt's proposal to open up retail sector

The BJP has opposed Commerce Minister Kamal Nath's proposal to allow foreign direct investment (FDI) in the retail sector on selected items.

Party spokesperson Prakash Javadekar said, "We condemn the government's intention to allow FDI in the retail sector by selecting a few sub sectors like sports goods, electronics and building material".

"It seems from Commerce Minister Kamal Nath's statement that the government has already made up its mind to allow multi-brand retailing and front- and back-end trading," he added.

"The only decision which is pending is whether to allow it through the automatic route or the Foreign Investment Promotion Board (FIPB) route," he said.

He characterised it as "yet another attempt by the government to bring in FDI in all sectors of retail marketing", adding that the BJP would oppose this move tooth and nail.

"The government has already allowed 51 per cent FDI in single brand retailing and 100 per cent in cash and carry," he said.

The BJP said it was concerned about nearly 15 million small retailers in India who may face closure if FDI in retail was allowed.

"Retail is a labour intensive, employment generating activity, with many Indians running a 'mom and pop' store kind of operation. The BJP cannot sit by and watch them going out of business," said Javadekar.