Brushing aside Commerce and Industry Minister Anand Sharma’s claims that 51% Foreign Direct Investment (FDI) in retail sector will increase employment; opposition BJP and UPA government's ally Trinamool Congress protested against the policy. According to BJP, the entry of FDI in retail sector will create unemployment and adversely affect thousands of traders. 'FDI is not required in retail sector. Cold storage facility is not rocket science that you need FDI for it,' BJP spokesperson Prakash Javdekar said.
The cabinets move to allow foreign players to invest in one of the world’s untapped retail market is subject to many conditions including a minimum investment of $ 100 million (Rs 5,200 crore), atleast 50% of investment in back-end infrastructure like cold storage, packaging and other logistics is must. This decision will pave way for global retail chains like Walmart, Tesco and Carrefour.
BJP joined by Trinamool Congress leaders created uproar in Lok and Rajya Sabha. In upper house, Sharma's statement detailing the policy was torn by CPI-M and BJP members. The ruckus in both the houses led to adjournment till Monday.
However, this move was positively welcomed by Indian companies associated with the retail sector. Euphoria of these companies’ share prices was seen throughout the trading day.
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