FDI in retail: CPI(M) to launch nationwide protest

The Party fears that 51 per cent FDI in retail would virtually open up the retail trade to multinational giants.

The Communist Party of India (Marxist) has said on Wednesday that it would protest the Government's decision to allow foreign direct investment (FDI) in areas like retail, as it would have "deleterious effects on the economy".

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The CPI(M), which along with three other Left parties supports Prime Minister Manmohan Singh's coalition at the Centre, said that the Cabinet's decision to liberalise FDI in key areas such as airports, mining and retailing would be damaging to the people.

The party politburo said that the decision to allow 51 per cent FDI in retail would virtually open up the retail trade to multinational giants.

"The stipulation that it will be for single brand shops does not mean that it will apply to single products only, but can cover a variety of products under a single brand name," a CPI(M) politburo statement said.

The Cabinet has cleared a comprehensive package of measures to make foreign direct investment easier and simpler in several key areas, including retail, power trading, processing and warehousing of rubber and coffee, diamond and coal mining, airports and petroleum infrastructure.

The retail sector has been opened up for the first time, with a decision to allow 51 per cent FDI, but with the stipulation that this will only be for single brand shops. Currently, single brand retailers operate through the franchisee route.

The politburo also urged people to come forward to protest the decision of the Congress-led United Progressive Alliance (UPA) Government.