SJM bats for change in FDI norms to block entry of MNCs in New Retail Format
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The Rashtriya Swayamsevak Sangh affiliate Swadeshi Jagran Manch (SJM), on Sunday, urged the Centre to change the foreign direct investment (FDI) norms to block the entry of multinational companies (MNCs) in the new retail format. In the national digital conference, SJM has said the nexus of MNCs and Indian business houses should not be allowed to operate in India and argued that it will be detrimental to a very large population engaged in multi brand retail in the shape of local kirana stores, manufacturers in the micro and small industry sector and to the consumers at large.

FDI norms should be appropriately amended to block the entry of MNCs in multi brand retail trade in India in any format directly or indirectly. This was necessary as MNCs have been flouting the norms prescribed for them to operate in the Marketplace Model, said SJM.

“In the last few months, we have witnessed another development in the multi brand retail sector and that is MNCs are increasing their presence in organised retail in India. The MNCs are now collaborating with major local players to create an Omni channel retail model, where the arrangement has been made in a very cunning manner so that MNCs can carry on multi brand retail trade in India by circumventing FDI policy restrictions on them,” said SJM.

SJM in the resolution said the Government of India should examine critically the real impact of such development on the overall employment in the unorganised retail as well as on the consumers at large. Sale of medicines through e-commerce should not be permitted, keeping in view the law of the land and its likely impact on health safety of the population.

According to SJM, the government’s intervention was needed to protect the retail sector as it contributes 10% to the GDP and more than 50 million people were involved in traditional retail with more than 20 million outlets of small or very small sizes.

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Free Press Journal