The Congress and left parties on Wednesday criticised the Modi Government's decision to allow 100 per cent FDI through automatic route in most of e-commerce retailing, saying it would "play havoc" with five crore retailers in the country already facing the brunt of economic slowdown.
Former Commerce Minister Anand Sharma said the decision by the Modi dispensation would "harm" the interests of the country and especially hit small businessmen. "When the Congress-led UPA Government had decided to open the country to multi-brand retail to help boost the economy, he (Modi) as Gujarat Chief Minister was in the forefront to oppose it. While the earlier Government had taken all precautions to protect small businessmen, yesterday's decision has come as a bolt from the blue for them," Sharma said adding already the retail trade is plagued by problems with e-commerce gaining ground.
For its part, the CPI(M) politburo demanded the withdrawal of the policy immediately, accusing Centre for appeasing United States on the eve of Prime Minister's visit. "The decision of the Modi Government to allow 100 per cent FDI in e-commerce retail is an outright surrender to the interests of big foreign e-commerce retail firms. This is clearly announced to appease foreign capital on the eve of PM Modi's US visit. It is also a surrender to the pressures of the EU keeping in mind the ongoing Free Trade Agreement talks with EU and the Prime Minister's visit to Brussels," said politburo in a statement.