Saturday, June 4, 2011

Drop the move to permit FDI in retail trade










Drop the move to permit FDI in retail trade - Yatra by SJM, TN.

Govt Of India is contemplating to permit 100% FDI in Multi-Brand Retail Trade in selected cities all over India. Presently 100% FDI is permitted in whole sale cash and carry Trade and Single Brand Retail. There are about 4 Crore small traders popularly known as "mom and pop stores" in India and another 6 crore people are indirectly engaged in supporting activities. The sector contributes about 15% to GDP and is a major source of self- employment avenue. The entry of MNC's and big corporate will throw 80% of this 10 crore people out of their occupation and destory their livelihood. Throught out the world unemployment is a major challenge and the country has a vibrant entrepreneurial class in retail. The sector supports itself even without much financial assistance from banks. It is a cost effective and sustainable business model persisting in the country for hundreds of years. On the contrary big corporates that have entered the sector has so far been incurring only losses. Their claim that the entry of MNCs and big corporates is neither in the interest of producers nor consumers or even themselves.

The 90th report of Parliament Standing Committee on Commerce chaired by Shri Murli Manohar Joshi also recommended not to allow Foreign as well as domestic investment in the unorganized retail sector in India. The committee has commended Indian retail as the retail democracy and is appropriate model for Indian Situation.

Eminent thinkers also feel that only local business are the sources of neighbourhood philanthropy and that will suffer if FDI is allowed in retail.

The Tamil Nadu Swadeshi Jagran Manch is determined to stop this loot and the onslaught. So it had undertaken an yatra in Southern districts of Tamil Nadu to make the people and traders aware of the danger. The Yatra was enthusiastically welcomed by the public and the traders.Almost in all the towns Traders Association actively took part in the yatra. The press coverage was nice. The Police dept also deserved appreciation for their co-operation.

The Yatra began at 22nd May in Nagercoil and ended up with the valedictory address by Sri S. Gurumurthy on May 28th at Madurai.




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