Naveen demands withdrawal of FDI in retail
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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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