JD-U opposes FDI in retail sector

New Delhi, Nov. 28 (ANI): Janata Dal-United (JD-U) chief Sharad Yadav on Monday opposed the Centre's decision to approve 51 percent Foreign Direct Investment (FDI) in multi-brand retail, and accused the ruling Congress Party of giving away the entire retail market in the hands of foreign investors.

"The East Indian Company had come to our country as cloth merchants, but the Congress party is giving away the entire retail market in the hands of foreign investors," Yadav told mediapersons here.

Meanwhile, JD-U Delhi unit general secretary and spokesperson Prabhat Ranjan also opposed the government's decision, saying that it would not only add to the miseries of small traders and farmers, but also leave a lot of people unemployed.

He said that if foreign brands are permitted entry into the Indian markets then they will take the whole farming community under their direct control and that the farmers would have to depend on the decision taken by the big companies.

Recalling the views of Mahatma Gandhi, who fought for the farmers' rights, Ranjan said: "Mahatma Gandhi himself visited Champaran and all foreign clothes were burnt. The Congress Party is deceiving the people of the country through their decision to approve FDI."

Both Houses of Parliament were today adjourned till Tuesday with the opposition expressing strong resentment against the government's decision to allow FDI in multi brand retail.

Last Thursday, the Cabinet approved 51 percent FDI in multi brand retail, As per this move, many global retailers like Wal-Mart, Carrefour and Tesco can open outlets in India.

The Cabinet also decided to remove the 51 per cent cap on FDI in single brand format under which companies in food, lifestyle and sports business run stores. Owners of brands like Adidas, Gucci, Hermes, LVMH and Costa Coffee can have full ownership of business in India.

Foreign Direct Investment (FDI) or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.

It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. It usually involves participation in management, joint venture, transfer of technology and expertise. (ANI)