| Date: |
26-11-2015 |
| Subject: |
Relaxation of FDI norms 'absolute jugglery' of words: CAIT |
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NEW DELHI: The recent liberalisation of FDI norms is "absolute jugglery" of words used to provide backdoor entry to foreign firms in retail segment under the pretext of wholesale cash and carry format and single brand retail, traders body CAIT alleged today.
It said as per the DIPP's press note the applicability of definition of "manufacturing" has been extended even to the assemblers and re-packers which contravenes the objectives of 'Make in India' initiative.
"The FDI relaxations notified by the Department of Industrial Policy and Promotion (DIPP) is absolute jugglery of words used to provide backdoor entry to multinational companies in Indian retail trade under the pretext of wholesale cash and carry format and single brand retail," CAIT said in a statement.
The Confederation of All India Traders (CAIT) said the DIPP is more eager to provide ease in business to MNCs.
"We condemn such a differential approach," it said, adding that MNC retailers are not manufacturers.
They further said that under wholesale cash and carry format of retail, foreign companies are flouting the rules and selling even to consumers directly which they can not do as per the FDI policy.
CAIT will take up the issue with Finance Minister Arun Jaitley and Commerce and Industry Minister Nirmala Sitharaman, it said.
"It is an irony that domestic retail trade which is often described as backbone of economy has never been on priority of any government... time has come when the situation warrants a change," it added.
The government had recently relaxed foreign investments norms in several sectors, including single brand retail.
Source : economictimes.indiatimes.com
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