CAIT also claims that such a step will result in making large number of people jobless.

100 pc FDI in retail will lead to easy entry of MNCs Trade body CAIT opposes move
Atom FDI Wednesday, January 10, 2018 - 16:27

Hours after the cabinet approved 100% FDI in retail and construction through the automatic route, the Confederation of All India Traders (CAIT) has strongly opposed the move by the government.

Praveen Khandelwal, CAIT's National Secretary General says that this will facilitate easy entry of MNCs in retail trade of India and will also violate the poll promise of BJP. “It’s a serious matter for small businesses. It is a pity that instead of formulating policies for the welfare, upgradation and modernisation of existing retail trade, the Govt is more interested in paving way for the MNCs to control and dominate the retail trade of India,” he added, terming this government’s ‘love for MNCs’.

Earlier on Wednesday, the Union Cabinet approved 100 per cent foreign investment in single brand retail trading (SBRT) and construction development and decided to open up Air India for FDI up to 49%.

In addition to this, the government has also decided to allow foreign institution investors and portfolio investors to invest in power exchanges through primary market. It also amended the definition of ‘medical devices’ in its FDI policy.

These decisions, according to the government, is with the intention of liberalizing and simplifying the FDI policy to improve ease of doing business, which it believes will lead to larger FDI inflows, contributing to growth of investment, income and employment.

However, CAIT claims that such a step will result in making large number of people jobless.

At present, the FDI allows 49% FDI in single brand retail trading under the automatic route and beyond that, it allows up to a 100% with government approval.

The government will also allow single brand retail trading entities to set off incremental sourcing of goods from India for global operations during initial five years, beginning April 1 of the year in which they open their first store as against the mandatory sourcing requirement of 30 per cent of purchases from India

Terming it a brutal move overall, Praveen has said that it will soon declare its nationwide strategy to oppose it.

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