Bhubaneswar: The Odisha Government on Sunday said it was “deeply distressed” to hear about the decision by the Union Government to allow 51 percent Foreign Direct Investment (FDI) in the retail sector.
“The biggest challenge facing the country today is inflation. Instead of taking immediate steps to tackle this problem, the Central Government has now allowed FDI in retail sector which provides employment to 7 %
of the workforce of the country. This move will only favour the large MNCs, which will have monopoly over trading in this country,” a release issued by the Chief Minister’s Secretariat said.
The Union Government, instead of allowing FDI’s into the retail sector, should have strengthened the marketing opportunities for farmers and small scale manufacturers of the country.
“In a federal country like ours, the Union Government should not have taken such a major policy decision without adequate consultation with the State Government,” the CM’s release added.
It is noteworthy to mention that, India Thursday allowed global chains like Wal-Mart, Carrefour and 7-Eleven to bring up to 51 percent foreign equity to open multi-brand retail stores and allowed 100-percent equity in single brand format.