FDI will help create 1 crore new jobs in retail: Government

The government on Friday claimed that foreign direct investment (FDI) will help create over 1 crore (10 million) new jobs in the retail sector and benefit consumers and farmers.

The government on Friday claimed that foreign direct investment (FDI) will help create over 1 crore (10 million) new jobs in the retail sector and benefit consumers and farmers.

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In a full-page advertisement in leading newspapers, the commerce and industry ministry said it was just a myth that FDI in multi-brand retail would result in job losses.

“Contrary to this mistaken belief, FDI in multi-brand retail will generate new employment opportunities, resulting in 1 crore new jobs,” it said.

In the advertisement, the government claimed that due to FDI in retail, "farmers will receive better remuneration for their product and will benefit from additional job opportunities resulting in overall improvement in their quality of life".

The government's decision to allow FDI in multi-brand retail has resulted in political turmoil in the country with a key ally Trinamool Congress pulling out of the ruling United Progressive Alliance and opposition parties, both from political right and left, demanding a rollback.

Shrugging off the protests, the government on Thursday notified the decision to allow up to 51 percent FDI in multi-brand retail and hiked the limit of overseas investments in single-brand retail to 100 percent.