New Delhi, November 28: The Bharatiya Janata Party on Thursday opposed to the Foreign Direct Investment (FDI) being introduced in the Retail sector maintaining that the move would result in job losses.
The BJP in its joint statement issued by two senior leaders said it would strongly oppose FDI in retail, allowing 51 per cent FDI in multi-brand retail and 100 per cent FDI in single-brand, saying that it would lead to the creation of monopolies by international retail players such as Walmart.
The two Leaders of the Opposition, Smt. Sushma Swaraj, Leader of Opposition (Lok Sabha) and Shri Arun Jaitley, Leader of Opposition (Rajya Sabha) issued a joint statement saying that any such decision would not only hurt domestic players but also small shopkeepers in hundreds of small towns and cities.
Arun Jaitley said, “International retail does not create additional markets, it merely displaces existing markets. Foreign players with deep pockets do this through predatory pricing. They first sell at low prices and after eliminating the competition, they create their own monopoly following which they increase prices.”
The Indian economy, at present, is dominated by the Services sector. The Services sector account for 58 percent of India’s GDP. The retail chains in India, both small and big, account for a major segment of the Services sector. Self-employment in India is the single largest source of jobs. An overwhelming section of India’s population is self-employed.
BJP has argued that Foreign Direct Investment with deep pockets entering this segment will have an adverse impact on domestic retail sector.
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