Mamata opposes 51pc FDI in retail
Two key allies of India's ruling UPA, including Paschimbanga Chief Minister Mamata Banerjee, yesterday firmly opposed the Indian government's move to open up the country's long-protected vast retail sector to 51 percent foreign direct investment.
"We will not allow 51 percent FDI in retail in West Bengal. It will affect the livelihood of about five crore people," Mamata, Trinamool Congress chief, told reporters in Howrah, adjoining Kolkata.
The Indian cabinet had on November 24 approved 51 percent FDI in multi-brand retail, paving the way for global giants like Wal-Mart and Carrefour to open mega stores in cities with population of over one million.
Mamata's party colleague and Indian Railway Minister Dinesh Trivedi, the sole Trinamool representative in the federal cabinet, had protested against the decision during the meeting chaired by Prime Minister Manmohan Singh.
Describing the Centre's decision to allow FDI in retail trade as "dangerous", another UPA coalition constituent DMK of southern state of Tamil Nadu demanded rollback of the decision.
DMK Chief M Karunanidhi said in a statement in Chennai: "The Centre's insistence that states should go by the decision cannot be justified. DMK had opposed FDI in retail trade even when the idea was originally mooted."
The opposition by Trinamool Congress and DMK is likely to give a setback to Manmohan Singh government's efforts to start bold economic reforms like opening of retail trade to FDI as the two parties have a combined strength of 36 lawmakers in the Lok Sabha.
Trinamool and DMK have now 18 members each in the Lok Sabha (lower house of Indian parliament).
"It is dangerous to allow FDI in retail trade as it will affect lakhs of small traders as well as the poor and middleclass consumers. It will also be a cause for economic decline for our country,” Karunanidhi said.
"Through FDI, India will have to face a tsunami-like situation which will badly affect the economy. Therefore, great caution has to be exercised," he said.
Ninety percent of India's retail trade consists of family-run stores. India's retail sector is estimated at $470 billion.
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