The Hindu : National : JD(S) opposes Manmohan's statement on FDI

Online edition of India's National Newspaper
Wednesday, Dec 14, 2005

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National

JD(S) opposes Manmohan's statement on FDI

Special Correspondent

98% of small retailers are in unorganised sector

NEW DELHI: The Janata Dal (Secular) has opposed the reported statement of the Prime Minister, Manmohan Singh that the Government would go ahead and allow foreign direct investment in retail marketing, despite strong opposition from parties supporting the Government.

There are about 1.1 crore small shop owners and small and medium traders, who with a turn over of Rs. 200,000 crores contributed one-seventh of the country's GDP and formed 70 per cent of the total work force, the highest after agriculture. Ninety eight percent of the small retailers were in the unorganised sector and would, therefore, not equipped to defend themselves against the onslaught of giant multinational retailers once the market was opened.

The global retail chain Wal-Mart, for instance, had a turn over of US dollars 285 billion last year, which exceeded the GDP of Sweden. If FDI was allowed, such giant MNCs would monopolise the entire retail market, eliminating rural and urban suppliers of goods and products in the country, the party said.

The General Secretary and spokesperson of the party, Kunwar Danish Ali, said the JD(S) also opposed the policies being dictated by WTO to developing countries including the agreement on agriculture. Spotlight at the Hong Kong Ministerial should be turned on the huge subsidies provided by the governments in U.S. and E.U. countries to their farmers.

"The Hong Kong meeting of the WTO will be a test of the Government's commitment to safeguarding the interests of our farming community. It is incumbent on the Government to ensure that the design of the rich countries to continue the exploitation of the poor countries is opposed. Our delegation must oppose the nefarious design of the developed countries especially the U.S. in making WTO their tool for gaining undue advantage over third world.''

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