It’s foolish to say FDI will kill Indian small retailers: Kapil Sibal
Presenting the government’s point of view on the FDI in the multi-brand retail debate, Communications and IT Minister Kapil Sibal said, “The issue of FDI in the multi-brand is being hyped.”
|Last Updated: Dec 04, 2012, 06:20 PM IST|Source: Bureau
Zeenews Bureau
New Delhi: Presenting the government’s point of view on the FDI in the multi-brand retail debate, Communications and IT Minister Kapil Sibal said, “The issue of FDI in the multi-brand is being hyped.”
The senior Congress leader accused Opposition of leveling baseless allegations that FDI is a sell-out.
“Only 53 cities in India qualify for FDI in retail. If any state government does not want to bring FDI in retails they are most welcome. But if any state Chief Minister want to bring FDI then no one can stop them too,” Sibal added.
Sibal said further, “No one is being forced to bring FDI in retail so what is the need of this debate. This debate is completely of no use and is happening only due to the pressure of some political parties.”
“I want to further appeal through you, Madam Speaker to the leader of the Opposition to continue with her views,” Sibal said.
“It is foolish to say presence of foreign retails will kill small retailers in Indian cities,” Kapil asserted.
The minister further said, “A new kind of federal structure was being suggested in the country by the opposition, which was ignoring the fact that the policy allowed the states whether or not to permit an FDI project in retail.”
"The purpose of the policy is that the farmer should get a higher price than he gets in the mandi (market)," he said.
"Only 15 to 17 percent of the market price goes to the farmer. Opposition leaders should decide whether they are with the farmer or with the middleman... We are with the farmer and consumer... you are with the middleman," Sibal said.
The minister cited the case of West Bengal, saying Pepsico there bought agricultural produce from 10,000 farmers.
"The market price of potato is Rs.3 per kg, Pepsico gives Rs.7 per kg," he said.
He also stressed that implementing FDI in retail was dependent on the state governments and no one was being forced to accept it.
"It was decided that retail will only be in cities with over 10 lakh population. There are 53 such cities. After that we felt some states have opposition government. If we separate the states that don`t want it, there are 18 cities left," Sibal said.
"So if FDI in retail will be implemented in only 18 cities, why the debate that is happening," he said.
"If you don`t want FDI in multi-brand retail, don`t (implement it). But what about the states where chief ministers want it, how can you stop them? This is a new definition of federal structure that one state will tell another that I will not implement it but will not let you do it either," he said.
"This debate is not needed at all, it is a totally political debate," he said.
Enumerating the merits of the policy, he said the investors will have to invest at least $100 million, half of which will be in creating infrastructure.
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Cookies Setting
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device and the processing of information obtained via those cookies (including about your preferences, device and online activity) by us and our commercial partners to enhance site navigation, personalise ads, analyze site usage, and assist in our marketing efforts. More information can be found in our Cookies and Privacy Policy. You can amend your cookie settings to reject non-essential cookies by clicking Cookie Settings below.
Manage Consent Preferences
Strictly Necessary Cookies
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work or you may not be able to login.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They are also used to limit the number of times you see an advert as well as help measure the effectiveness of an advertising campaign. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we may not know when you have visited our site, and may not be able to monitor its performance.