TN not to allow FDI in retail

TN not to allow FDI in retail

Within 24 hours of the Centre deciding to bring in FDI in multi-brand retail, the AIADMK government in Tamil Nadu announced that it will not implement the decision.

With the final call on allowing FDI in multi-brand retail resting with the states, Tamil Nadu Chief Minister J Jayalalitha said, “My government will never allow FDI in retail in Tamil Nadu.”

The chief minister, who had opposed the move when it was first proposed last year by Union Commerce Minister Anand Sharma, said in a statement here that she was registering her opposition to the Centre’s decision.

Urging the Centre to “immediately withdraw” this decision, Jayalalitha said the decisions to allow 51 per cent FDI in multi-brand retail and foreign investments in the domestic aviation sector were “shocking, totally undemocratic and against public interest.”

“There will be a lot of confusion as well as administrative problems in dealing with this issue, which will only fuel uncertainty and cripple the growth of our economy further,” she said. MNCs will “destroy” the small and marginal traders, besides “exploiting consumers through their predatory pricing.”

However, DMK patriarch M Karunandhi, while reiterating his party’s opposition to the move,
subtly diluted its stand on the issue. Allaying fears that the domestic retail sector will be marauded by the big players from abroad, Karunanidhi pointed out that implementing FDI in multi-brand retail is optional for the states. “There is no compulsion for the Tamil Nadu government to implement the decision,” he said.

MDMK leader Vaiko, PMK founder leader S Ramadoss and the Left parties also opposed the Centre’s decision, contending that allowing 51 per cent FDI in multi-brand retail will ruin the livelihood of about five crore small retailers and traders in the country.