CPI(M) against FDI in retail: Karat

The Hindu Business Line Thursday, Dec 08, 2005

New Delhi , Dec. 7 The Communist Party of India (Marxist) on Wednesday said the party is not generally opposed to foreign direct investment, but it certainly does not buy the arguments being used to allow FDI in retail trade. Speaking at an interactive session organised by the Associated Chamber of Commerce and Industries of India (Assocham), the General Secretary of the CPI(M), Mr Prakash Karat, said that "the impression that my party and the Lefts are opposed to foreign direct investment is generally not correct." "But are not convinced by the argument in favour of allowing FDI in retail trade," he said.

Mr Karat said that the party welcomes FDI when it helps in acquiring new technology, promote employment, augment productive capacity, particularly necessary in the manufacturing sector. "There is not a single instance when the Left has objected to FDI in manufacturing," he said. Elaborating the reason for objecting to FDI in retail trade, Mr Karat said that during the last 15 years employment in manufacturing and all other sectors have decreased. In case of retail trade, the employment has increased and according to one estimate it employs around four crore people. This sector has also absorbed some labour that the agriculture sector could not absorb, he said. "So if you kill this employment area it will have serious repercussions in our society," he said.

He added that the party has asked the Government to closely examine the fall out of allowing FDI in the retail sector in other countries. On allowing South Korea's Pohang Steel Company (POSCO), Mr Karat said that the party had never opposed the proposal. "We were not opposed but had asked the Government to look into the issue of indiscriminate exploitation of our mineral resources," he said. Related Stories: FDI in retail — A question of jobs, not ownership The retail FDI bugbear FDI in retail: The debate rages