Why the BJP opposes FDI in retail

 Why the BJP opposes FDI in retail

Allowing 51 per cent foreign direct investment (FDI) in multibrand retail in India is not a good move, because the companies that we are inviting are known to monopolise the market wherever they go. There are several reports from across the world to prove that the five major companies, like Wal-Mart and Carrefour, use a monopolistic approach to kill local markets. Indonesia and the US are good examples of the result of such monopolistic policies.

India, with its weak manufacturing base and weak supply-side infra- structure, is not in a posi tion to compete with such global brands. But at the same time, our country provides such a big mar- ket that all big names want a piece of the pie. Thus, the onus of protecting our market and promoting the locals lies with us.

When we can build our domestic infrastructure so well (a case in point is the metro rail system), why do we need foreigners to come here? On the other hand, when the parliamentary committee had rejected FDI in retail, how could it have been passed leida 909 hisz Economics is a complex issue, which demands that a balance be struck between the positive and the negative. But, unfortunately, this bill gets weighed down by its shortcomings.

The move is nothing but a reflection of the govern- ment's stubborn nature. It also reflects how certain bodies are lobbying for their vested interests. Also, there is no denying that avenues of corruption are be- ing opened up in the name of development through this move.

Besides, when foreign organisations enter the mul tibrand retail market in India, they will look to pro- cure goods at subsidised rates here. Then, they will flood our markets with these goods, and look to pocket fat profits, further weakening our hold on our own market.

There is also the possibility that dealing with these foreign organisations may actually reduce our foreign exchange coffers, which may go in the negative.

It is important to look within and improve the na tion's lot by focussing on agriculture and the manufac- turing sector, rather than depending on others to come and help us out."

In conversation with Nidhi Qazi

There is no denying that avenues of corruption are being opened up in the name of development."

GOPAL KRISHAN AGARWAL Convener, Economic Cell, BJP