Industry slams AAP’s move against retail FDI

The New Delhi chief minister Arvind Kejriwal’s stand against allowing FDI in multi-brand

retail in New Delhi has drawn heavy criticism from the industry experts. The feel the government's decision is against the interest of the state’s citizens and will hurt investments, while leading to policy uncertainty.

According to them the sudden policy reversal has negatively impacted investors keen to be part of the India growth story. J Suresh, Chairman of National Committee on Retail at the Confederation of Indian Industry has termed the decision as unfortunate, and added that it may send a wrong message globally.

Experts feel global retail giants may not view it as a one-state phenomenon and may even defer their plans to invest in India. As Suresh points out, “For any international retailers, Delhi is an important consumer market. Modern retail helps to bring down costs, benefits farmers, the small entrepreneurs and ultimately the consumer. This has been proved worldwide.”

“Consumers will benefit as it will result in better price and more choice. The farmer will benefit and it will help reduce wastage," said Commerce & Industry Minister, Anand Sharma. He said the policy was approved after a debate and voting in both houses of Parliament.

Several studies on the issue have shown that consumers would save up to Rs 1.95 lakh crores across segments annually while farmers and other stakeholders would benefit significantly. “These jobs would provide fair wages and benefits, opportunities for further development and growth and better working environment than most alternatives available to such employees,” said a CII-Boston Consulting Group report.