DMK Chief M Karunanidhi said, "The Centre's insistence that states should go by the decision cannot be justified. DMK had opposed FDI in retail trade even when the idea was originally mooted".

DMK, which has 18 members in the Lok Sabha, is the second UPA constituent to oppose the move, the first being the Mamata Banerjee-led Trinamool Congress, which also have the same number in the Lok Sabha.

"It is dangerous to allow FDI in retail trade as it will affect lakhs of small traders as well as the poor and middle class consumers. It will also be a cause for economic decline for our country. The DMK has sounded a note of warning in this regard in the Parliament", he said in a statement here.

Karunanidhi said, "India will suffer very much if FDI in retail trade is allowed with small traders and poor consumers losing their livelihood."

"Through FDI, India will have to face a tsunami-like situation which badly affect the economy. Therefore, great caution has to be exercised", he said.

Taking a dig at his arch rival and Tamil Nadu Chief Minister Jayalalithaa, who had alleged that the Centre had adopted an arrogant approach without consulting the state on the issue, Karunanidhi said the Centre's announcement could not be compared with her decision to "steeply hike" milk price and bus fares.

The Centre should neither compel the states nor even suggest to them to implement the decision, he said, adding the Centre should withdraw the decision accepting the views of DMK and other political parties and also the unanimous demand of small traders.

This is for the second time in as many days the DMK had come out against the Centre, the first one being to oppose the Indian Coast Guard's proposal to create a no-fishing zone in Palk Straits to avoid attack on Indian Fishermen.