A parliamentary standing committee has recommended a blanket ban on foreign investment in retail and has opposed even big domestic corporate entering the sector saying that it will lead to unemployment.
“The committee recommend that a blanket ban should be imposed on domestic corporate heavy weights and foreign retailers from entering into retail trade in grocery, fruits and vegetables,” it said, adding that restrictions should be put for opening large malls by them for selling other consumer products.
The committee, headed by Murli Manohar Joshi, feels that opening of foreign direct investment (FDI) in retail trade by allowing single brand foreign firms in India will result in unemployment due to slide-down of indigenous retail traders.
The 42-member panel in its report on ‘Foreign and Domestic Investment in Retail Sector’ further said that the government should stop issuing further licences for ‘cash and carry either to the transnational retailers or to a combination of transnational retailers and the Indian partner, as it is “mere a camouflage for doing retail trade through back door”.
Source: Business Standard