IB advised against FDI

“The report of intelligence agencies does not endorse the decision and detailed to the government the impact of its move on employment for urban youth”, well placed sources told Deccan Herald.

The Intelligence Bureau (IB) is understood to have warned the government that allowing entry of FDI into retail would consolidate “ideology-driven” movements and help far Left propaganda against the state. The agency worked on the issue for the last six months and summarised unemployment scenario in the cities in the event multinational retail chains such as Wal-Mart entering a sector that provides the second largest employment after agriculture, sources said.

Interestingly, the IB has concluded that the BJP, the main Opposition party, would not go too far on the issue because of “internal divisions within the party”.

It, however, stated that Opposition parties as such would not pose any threat to the stability of the government over the issue.

The report, according to sources, maintained that the huge retail sector not only provides employment to a large number of people, but also provide a wide range of options for self-employment.

The report, it is learnt, cited the example of  prohibiting roadside vendors to trade in urban centres. The action may  spiral resentment in the urban centres which have recently turned an easy nurturing ground for civil rights groups like the one represented by Anna Hazare.

According to sources, a section of bureaucracy is also opposed to the decision of allowing FDI in retail on other grounds as well. The sudden decision caught many of them off guard, sources in the bureaucracy said.