FDI will revolutionise retail sector: Government

By IANS,

New Delhi : Amid growing attacks from the opposition and some of its allies for allowing foreign direct investment (FDI) in multi-brand retail, the United Progressive Alliance government Sunday launched a media campaign saying the decision would revolutionise the country’s retail industry.


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In full page advertisements in prominent newspapers, the ministry of commerce and industry said FDI in retail would provide “relieve to consumers”, ensure “better price to farmers” and create “lakhs of new jobs”.

The government Thursday decided to allow up to 51 percent foreign direct investment in multi-brand retail and raised the limit in single-brand retail from 51 percent to 100 percent.

Key opposition parties, notably the Bharatiya Janata Party (BJP) and the Left Front, have criticised the government’s decision and threatened to launch a nation-wide campaign against the issue.

Some allies of the United Progressive Alliance (UPA) government, especially Mamata Banerjee-led Trinamool Congress, has also attacked the government on this issue.

Comparing the decision with IT revolution and 1991 economic liberalisation, the government said “now the retail market will witness a revolution with FDI.”

In the advertisement, the commerce and industry ministry has termed the criticisms as myths and countered it with point-to-point arguments and said the realities were different.

“FDI in multi brand retail will generate new employment opportunities, resulting in 1 crore new jobs,” it said.

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