The Confederation of All India Traders (CAIT) in a communication sent today to Prime Minister Dr. Man Mohan Singh has drawn his attention towards the Notification of allowing FDI in Retail, which has given unusual and extraordinary benefits to global retailers, which will prove to be much draconian to Indian Small Industries.
The CAIT has also expressed deep anger over the role of Industry bodies like FICCi Assocham and CII who have never raised even a single word about the most detrimental provision of FDI Notification for Indian Small Industries rather supporting the FDI in Retail which may accrue benefit to Indian Corporates.
CAIT Secretary General Praveen Khandelwal while inviting attention of the Prime Minister towards the clause of 30% procurement of goods from small industries said that the basic fundamental of the clause has been diluted to the extent that will enable the global retailers to win over the Indian Small Industry which over a period of time will suffered self-death.
Khandelwal said that though it has been stated in the Notification that the Foreign Investor shall have to procure 30% material from Indian "small industries" but the procurement requirement would have to be met in the first instance as an average of first five years beginning 1st April of the year in which first tranche of FDI is received and.from 6th year this requirement would have to be met on annual basis.
The CAIT has appealed the Prime Minister to take serious cognisance of the matter and withdraw the said notification in the larger interest of the Country. It is also suggested that an open debate should be carried out by the Government with an open mind with all stakeholders and political parties to assess the merits and demerits of FDI in Retail.
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