Withdraw decision to allow FDI: DMK tells Govt

Terming as "dangerous" the Centre`s move to allow foreign direct investment in retail trade, UPA ally DMK demanded the decision be withdrawn forthwith.

Last Updated: Nov 28, 2011, 13:46 PM IST

Chennai: Terming as "dangerous" the Centre`s
move to allow foreign direct investment in retail trade, UPA
ally DMK on Monday demanded the decision be withdrawn forthwith.

DMK Chief M Karunanidhi said, "The Centre`s insistence
that states should go by the decision cannot be justified. DMK
had opposed FDI in retail trade even when the idea was
originally mooted".

DMK, which has 18 members in the Lok Sabha, is the second
UPA constituent to oppose the move, the first being the Mamata
Banerjee-led Trinamool Congress, which also have the same
number in the Lok Sabha.

"It is dangerous to allow FDI in retail trade as it will
affect lakhs of small traders as well as the poor and middle
class consumers. It will also be a cause for economic decline
for our country. The DMK has sounded a note of warning in this
regard in the Parliament", he said in a statement here.

Karunanidhi said, "India will suffer very much if FDI in
retail trade is allowed with small traders and poor consumers
losing their livelihood."

"Through FDI, India will have to face a tsunami-like
situation which badly affect the economy. Therefore, great
caution has to be exercised", he said.

Taking a dig at his arch rival and Tamil Nadu Chief
Minister Jayalalithaa, who had alleged that the Centre had
adopted an arrogant approach without consulting the state on
the issue, Karunanidhi said the Centre`s announcement could
not be compared with her decision to "steeply hike" milk price
and bus fares.

The Centre should neither compel the states nor even
suggest to them to implement the decision, he said, adding the
Centre should withdraw the decision accepting the views of DMK
and other political parties and also the unanimous demand of
small traders.

This is for the second time in as many days the DMK had
come out against the Centre, the first one being to oppose the
Indian Coast Guard`s proposal to create a no-fishing zone in
Palk Straits to avoid attack on Indian Fishermen.

PTI