Naveen demands withdrawal of FDI in retail

Last Updated: Monday, November 28, 2011 - 15:40

Bhubaneswar: Terming the decision to allow
FDI in retail as "highly regressive" and "ill advised", Orissa
Chief Miniser Naveen Patnaik on Monday urged Prime Minister
Manmohan Singh to withdraw it.

"In our considered view, this policy is ill advised and
highly regressive. I would, therefore, earnestly request you
to reconsider the matter and withdraw this policy
immediately," Patnaik said in a letter to the Prime Minister.

"I am deeply distressed to hear about the Union Cabinet`s
approval for allowing 51 per cent Foreign Direct Investment in
the retail sector," he said, observing that the biggest
challenge facing the country was persistent double digit
inflation.

Claiming that the move would only favour large MNCs which
would have monopoly over trading in the country, Patnaik said
the Centre should have instead strengthened marketing
opportunities for farmers and small-scale manufacturers.

The Centre should have done this through appropriate
supply side interventions including stepping up investment in
rural infrastructure and R&D for augmenting farm
productivity, he said.

Moreover, in a federal country, the Union government
should not have taken such a major policy decision without
consultation with state governments, Patnaik said.

PTI



First Published: Monday, November 28, 2011 - 15:40

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