Opposition to move adjournment motion against retail FDI

Opposition to move adjournment motion against retail FDIOpposition parties in India have united to oppose the government’s plans to allow Foreign Direct Investment (FDI) in the retail sector.

The cabinet approved a plan to allow 51% foreign direct investment in the supermarket sector in the country. The move will allow global giants like Wal-Mart, Tesco and Carrefour to enter the Indian market.

The department of industrial policy and promotion of the India government had put forward a proposal to allow 51% FDI in multi-brand retail and 100% in single-brand retail in the country. Most union ministries are believed to have given their consent to the proposal and a decision is expected next week on the matter. The move will allow foreign players to bring expertise in logistics and investment, which could help address supply bottlenecks in the country.

The opposition party, BJP will move an adjournment motion on the issue today with the backing of the Left in the parliament. Senior BJP leader Murli Manohar Joshi will introduce the motion in the Lok Sabha.

The ruling congress party is concerned as the opposition to the FDI not only comes from its main rival BJP but also others like AIADMK chief J Jayalalithaa, Trinamool Congress chief Mamata Banerjee and BSP chief Mayawati. The tree women Chief Ministers will have toe power to veto the entry of foreign firms into their states.

The government will subject supermarkets to strict local sourcing requirements and minimum investment levels aimed at protecting jobs. The central government has also said that individual states will be allowed to veto foreign retailers.