Easing of Retail FDI norms by Union Government - Betrayal of

Millions of small retailers, farmers and small scale entrepreneur

1. The BJP is opposed to the dilution of the mandatory 30% local sourcing norms for multi-brand retailers and permitting states to include cities with population less than 1 million for allowing multi-brand retailing which will enable the global retailers to open their stores in too small formats and will allow them to crush the domestic trade, small manufactures and shopkeepers of the country.
2. Easing the FDI norms for retail trade by the Union Cabinet today is the beginning of an era of economic dependency and exposes the complete helplessness of the UPA government. The current policy of the Union Government to provide unprecedented advantages to global retailers and big corporate houses once again proved that the Government is working under pressure of invisible forces and has lost the creditability of standing on its own legs.
3. I would like the government to come out openly as to what has happened that led the Government to run helplessly towards foreign investment in every sector. Such a mindset corroborated with related activities amply reflects that the Government has lost its control over the economy which is now being driven by invisible forces. It is astonishing that when only couple of days were left for beginning of Parliament session, what prompted the Government to take hurried decision on such an important issue which has vital bearing on the livelihood of crores of people in the country. Heaven would not have fallen, if Government would have waited for few more days.
4. As per decision, the global retailers will now have to source 30 percent of their products from small and medium enterprises only at the time of start of business and foreign investor will have to make the mandatory USD 50 million at the first engagement only. Thereafter, the investment would depend upon the business needs. These are two such conditions that will empower the global giants to control and dominate the retail trade of India.
5. This decision of the Government speaks volumes about the confusion in the UPA. One the one hand the Finance Minister says that manufacturing is the key for growth and on the other this dilution of FDI norms hits hard the SMEs which contribute maximum to the manufacturing sector and also to exports. The government, deep in trouble due to uncontrollable depletion of the Forex and rising CAD in its drive for attracting foreign investment, is destroying the SMEs which are the most potential source for augmenting forex. Countries progress by self confidence and prudent economic policies rather than moving with a begging bowl. The investment is not attracted by handing over the economy to foreign players, it is attracted with sound administrative norms, transparency and corruption free system. Government instead of reforming its culture of administration and weeding out corruption is killing small traders, farmers and small manufacturers.  
6. CAIT the apex body of retailer's organisations in different sectors has appealed the people to oppose this economically unsound decision which harms the national interests and I join their appeal to all political parties to support them in and outside Parliament. The BJP is firmly opposed to this move of the government and supports the just demands of the retail traders.   

[This is Dr. M.M. Joshi's statement for the Press Conference on 29.6.13]