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Stick to clarifications on FDI in MBRT: Traders tell govt
24
Jun '13
The Government should retain its stand on the clarifications issued with regards to foreign direct investment (FDI) in retail, and should not relax any of the conditions under any pressure whatsoever, Confederation of All India Traders (CAIT) has said in a letter to Commerce and Industry Minister Anand Sharma.
 
Earlier this month, in response to queries of global retailers, the Department of Industrial Policy and Promotion issued clarifications stating that 50 percent of the sum that the foreign retailers invest in India through the FDI route should go to back-end infrastructure, and the funds spent to acquire the outlet chain shall not be considered as investment. 
 
CAIT said that to serve their individual interest, global players and domestic corporate players are trying to build pressure on the Government to ease the aforesaid conditions. 
 
“It appears that these retailers are seeking clarification that 50 per cent back-end investment has to applicable only for initial investment of USD 100 million. If this concession is agreed to, it will totally go against the promise made by you in the Parliament at the time of approving FDI in multi brand retail,” the letter stated.
 
The CAIT statement said the association has been strongly opposing the entry of FDI in multi-brand retail in India.
 
The Association website negates the Government’s claim of creation of four million direct job opportunities in the country within three years of the entry of retail, and calls it as highly impractical.
 
“Global experiences of organized retail have clearly shown that instead of creating employment, Mega Retail Corporations actually reduce employment,” CAIT says on its website.
 

Fibre2fashion News Desk - India

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