New Delhi: Traders body CAIT has opposed liberalisation of the FDI policy in the retail sector, saying the steps would make India “a nation of sales boys and girls”. The FDI relaxations will make “India a nation of sales boys and girls and will damage the existing business eco-system of small traders”, Confederation of All India Traders (CAIT) said in a statement.
It said that the confederation is registering strong objections on behalf of the trading community. “We shall take up this issue with Finance Minister Arun Jaitley who has voiced trader’s view point strongly during the UPA regime. We have every hope that the Finance Minister being closely attached with trading community will certainly take corrective measures,” it said.
CAIT said that relaxations as announced by the government in retail sector will empower wholesale Cash and Carry businesses to circumvent the law at the cost of domestic trade and small industry. The government has permitted a single entity to undertake both the activities of single brand retail trading and wholesale. But the company has to follow the conditions of FDI policy on wholesale/ cash and carry and single brand retail by both the business arms separately.
“Traders across the country are deeply agitated over these recent moves. Traders are unable to understand as to what are the compulsions which led to announcement of FDI relaxations in retail trade,” CAIT said.
Such relaxations will create an uneven level playing field, it said adding it is an irony that domestic retail
trade which is often described as backbone of economy has never been on priority of any government.
BJP’s labour union wing Bhartiya Mazdoor Sangh too has strongly opposed the government’s decision to allow FDI in retail and defence sectors, and wrote to Prime Minister Narendra Modi seeking the review of the decisions