Government’s FDI policy has caused distress to Indian retailers – G. G. Mohandas Prabhu

Government’s FDI policy has caused distress to Indian retailers – G. G. Mohandas Prabhu

Mangalore Today News Network

Mangalore, Nov 22, 2012 : Speaking at a meeting on FDI, G. G. Mohandas Prabhu, former president of KCCI and president of Old Bunder Wholesale Kirana and Allied Merchants Association, said that the government’s decision to permit 51% foreign direct investment (FDI) in multi brand retail trade has caused a lot of distress to Indian retail traders.

 

 

Listing the adverse effects of FDI in Indian economy, he said that it will not provide higher income to farmers and reduce poverty. On the contrary, it will lead to large-scale displacement and poor treatment of Indian workers. The trade union, which has an estimated 20 million workers in the service industry, has studied business practices in several countries and come to the conclusion that FDI in multi brand retail will lead to displacement of Indian workers in logistics, retail, agriculture, and manufacturing sectors.

According to the National Sample Survey Organization of India (NSSO), 44 million people are directly involved in retail trade, and the small retail traders will not be able to compete against MNCs.

According to the Food and Agricultural Organization (FAO), an estimated 36% loss of fruits and vegetables has been reported in countries such as Australia, USA, Canada, and New Zealand.

Vasanth Achary, CPI (M) secretary, and leaders of several organizations were also present.

A memorandum was later submitted to DC Dr. N. S. Channappa Gowda.