Tamil Nadu not to allow FDI funded retail outlets
Tamil Nadu Chief Minister J Jayalalithaa on Sunday asked the Central government to reverse its "ill advised" policy of allowing 51 percent FDI in multi-brand retail sector.
Chennai: Announcing her government`s decision not to allow retail outlets with FDI in her state, Tamil Nadu Chief Minister J Jayalalithaa on Sunday asked the Central government to reverse its "ill advised" policy of allowing 51 percent FDI in multi-brand retail sector.
In a statement, Jayalalithaa said: "I demand that this ill advised move of the government should be reversed as it will not serve to bring down inflation or improve market efficiency."
According to her, the domestic manufacturing and services sectors will take a serious hit and the retail trade will be taken over by MNCs dominated big retail giants. This is not good for our country, she said.
"I am constrained to state that my government will not allow the multi brand global players as permitted under the new policy to set up their hyper markets in Tamil Nadu," Jayalalithaa declared.
Terming the Centre`s decision of allowing 51 percent FDI in multi-brand retailing and 100 percent in single brand retailing as a "rude shock to the millions of traditional retail vendors", Jayalalithaa said New Delhi`s decision to announce a major policy decision outside Parliament was both "unprecedented" and showed "the overweening arrogance of the government".
"But, by making this sudden announcement ignoring the sentiments of the people, the Central government has stirred the proverbial Hornet`s Nest," she said.
Citing reports that put 90 percent of India`s total retail business is in the unorganized sector, Jayalalithaa said the new FDI policy would render 40 million to lose their livelihood. As most of them are not well educated they would remain unemployed.