JP hails move to allow FDI in retail sector

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HYDERABAD: Lok Satta Party president and MLA Jayaprakash Narayan has welcomed Union government's move to permit foreign direct inv..

HYDERABAD: Lok Satta Party president and MLA Jayaprakash Narayan has welcomed Union government's move to permit foreign direct investment in the multibrand retail sector, saying FDI will benefit the farmer and the consumer, and stimulate the economy.
The Union cabinet is expected to approve the note by the department of industrial policy and promotion (DIPP) on allowing 51 percent FDI in the retail sector. The Union finance ministry has cleared the proposal.He said the fears that foreign retail chains would displace grocery stores and street vendors were misplaced. The experience the world over showed that foreign retail chains did not displace mom and pop stores. "Retail trade grows faster than the economy in early stages. The new business goes to retail chains, leaving traditional vendors their share."

He recalled that sections of employees had opposed computerisation of banks for decades, saying it would lead to largescale displacement of employees. "Now we know these fears had no basis." Under the present dispensation the farmer gets a low price for his produce even as the consumer pays a high price.