Last year, the central government permitted 51 per cent FDI in the multibrand retail trading and left its implementation on the states.
“This direct negation without demonstrating a search for a vible alternative would hamper investment sentiment. Consumers would have benefited from choices of products at competitive prices. It has been proven time and again that both large multibrand retail stores and small kirana stores coexist peacefully,” FICCI president Sidharth Birla said. As many as 12 states, mostly Congress-led, including Delhi had agreed to allow global retailers to open super market chains. The other states include Maharashtra, Karnataka and Andhra Pradesh. “The Delhi government’s decision is bound to impact the overall FDI scenario not just in Delhi but also associated states like Haryana, Rajasthan and Punjab because Delhi is the hub for northern states,” PHD Chamber of Commerce president Sharad Jaipuria said. “According to our assessment, overall retail sector in the Delhi-NCR region has potential to attract FDI worth USD 50 billion in the next 5-6 years if supported with conducive policies. But due to this decision, it won’t materialize,” he added. Delhi has become the first state to withdraw permission for FDI in retail sector. The Aam Aadmi Party (AAP) in the party manifesto had expressed its opposition to the policy of FDI in multibrand retail. (PTI)