Newly formed government led by Arvind Kejriwal in Delhi has recently announced its decision to withdraw permission for Foreign Direct Investment in retail. This move has made Delhi the first state to withdraw permission for FDI funded retail stores in the country.
Arvind Kejriwal government has written to the Department of Industrial Policy and Promotion (DIPP) on not allowing FDI funded stores in the state. The DIPP is now examining the letter sent by the Delhi government.
“This will discourage international retailers planning to enter India,” commented J Suresh, chairman of CII National Retail Committee over the Delhi Government’s decision.
Related Article: Government Permits 100% FDI In Single Brand Retail
The central government had opened multi-brand retail sector to foreign investment more than a year ago which allowed global retail giants like Walmart to open stores in India. However, the final decision to allow these firms to open stores in their respective states was left to the state governments itself.
The decision to withdrew the approval given by the previous congress led government on foreign Direct investment (FDI) in multi-brand retail in Delhi is being termed as anti-investment, “If one party reverses the decision of its rival dispensation upon change of guards, the policy and political risks for global investors would definitely increase in India, scaring them away,” says industrial body Assocham.
Apart from Delhi, states including Maharashtra, Jammu and Kashmir, Haryana, Rajasthan, Uttarakhand, Andhra Pradesh and Assam have in the past agreed to support the entry of foreign supermarket chains.
FDI in retail has been the hot topic of debate for quite some time now, not only between the political parties but also common people. Here are few tweets which came in after the Delhi government announced withdrawal of FDI in retail.
Withdrawing FDI in multi-brand retail in NCR by AAP most regressive move since Pranab’s retrospective tax
— Minhaz Merchant (@minhazmerchant) January 13, 2014
So one IITian Startup (AAP) trying to help the other IITian Startup(Flipkart) by banning FDI in retail. — Gabbar Singh 3D (@GabbbarSingh) January 13, 2014
Of all the things, FDI spreads unemployment? Kejriwal is not right in his head. — Fairchild Semi (@4JIT) January 13, 2014
@ArvindKejriwal sir please don’t be stupid and populist. This decision to curb FDI in retail in Delhi is completely insane.
— Shivam Shukla (@Shivam013) January 13, 2014
AAP actions seem fairly honest and transparent. However their stance on most matters is left. What logic for no FDI in retail ?
— R. Balakrishnan (@BalakrishnanR) January 13, 2014
No FDI in Retail in Delhi = More traffic in Gurgaon & no advantage of that bloody toll being removed ! — Akshay Chaturvedi (@akshaychat) January 13, 2014
When BJP oppose FDI cong call them anti development and blame for stoping parliament why Cong silent on their supported AAP stand in Delhi. — Nilessh Desai BJP (@nilessh_desai) January 13, 2014
[Image via Indiaopines.com]