In a significant move, the Arvind Kejriwal Government on Wednesday has decided to stick to its previous decision of not allowing the entry of Foreign Direct Investment (FDI) in the retail sector in the national Capital. The stand of the Delhi Government, which was communicated to the Department of Industrial Policy and Promotion (DIPP) of the Union Commerce and Industry Ministry, on January 14, 2014, remains unchanged.
losing Delhi as a potential market for retail outlets would be a big blow to the foreign retailers as the metro cities offer tremendous opportunities to the segment. On the other hand, the apex body of the Confederation of All India Traders (CAIT) has expressed utter dismay over the Central Government retaining 51 per cent FDI in multi-brand retail which was earlier strongly opposed by almost all political parties with BJP in the forefront.
According to a Press release, entry of FDI in the retail sector would be detrimental to the interests of traders and would lead to unemployment. The Delhi Government was of the clear view that the national Capital at this juncture was not ready to disturb the character of retail trade. Chief Minister Arvind Kejriwal has made it clear that the approval granted by the then State Government headed by Sheila Dikshit in 2012, was withdrawn in January 2014 and the decision remains unchanged.
The previous Congress Government had taken a number of steps to remove bottlenecks in attracting FDI in multi-brand retail. It had even announced making amendments to the Agricultural Produce Marketing Committee (APMC) Act to allow direct connectivity between retailers and farmers. It may be noted that all the Congress-ruled Governments had approved the FDI in retail including Delhi.
As per the existing provision, farmers cannot sell their produce directly to retailers as it has to be routed through the mandis operated by APMC. Dikshit had been strongly backing the Centre’s decision to allow FDI in multi-brand retail.
“Delhi Government will reiterate its stand to the Central Government to remove all ambiguity on the issue, which may arise due to the fresh policy document of the Centre released on Wednesday. The Delhi Government does not have blind opposition to the FDI, but it is of the firm view that the national Capital does not require its entry in the retail sector at this juncture,” said a Press release. The Aam Aadmi Party had opposed the entry of FDI in retail sector during Assembly polls in Delhi.
“We were expecting Government to reject the notification of allowing 51 per cent FDI in multi-brand retail, as was assured by all BJP leaders at various occasions during the UPA regime.
“The CAIT is shocked with the development and will surely take up this matter with Union Finance Minister Arun Jaitley and others in the Government,” said BC Bhartia and Praveen Khandelwal, national president and secretary general respectively of CAIT.
Both Bhartia and Khandelwal recalled that on March 7, 2013 at a grand rally of traders at Ramlila Maidan, here, the then BJP president, Rajnath Singh, while addressing the traders made a declaration that as and when the BJP would be in power, it would withdraw the notification of UPA Government allowing 51 per cent FDI in multi-brand retail.