Patna, Nov. 29 (ANI): Criticising the decision to approve 51 percent Foreign Direct Investment (FDI) in multi-brand retail, Janata Party chief Subramanian Swamy on Tuesday said the opening up the market to foreign investors would harm Indian industries.
"In our country, we have had business and businessmen since long and they have the ability to compete and in the present scenario one has to give three four times more the cost of capital as they (foreign companies) bring low-priced capital so no competition can take place. By bringing the retail bill, our industries will be rooted out," said Swamy.
"Secondly, optimum utilization of the black money would be made if the retail bill is brought and that is why I oppose it," he added.
The political upheaval over FDI in retail failed to subside today despite an all-party meeting, with a united opposition, joined by UPA constituents Trinamool Congress and DMK, stalling proceedings by remaining adamant on their demand for a rollback.
Last Thursday, the Cabinet approved 51 percent FDI in multi- brand retail, As per this move, many global retailers like Wal-Mart, Carrefour and Tesco can open outlets in India.
The Cabinet also decided to remove the 51 per cent cap on FDI in single brand format under which companies in food, lifestyle and sports business run stores. Owners of brands like Adidas, Gucci, Hermes, LVMH and Costa Coffee can have full ownership of business in India.
Foreign Direct Investment (FDI) or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.
It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. It usually involves participation in management, joint venture, transfer of technology and expertise. (ANI)
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