Corporate consultant and economist S Gurumurthy said India had about 125 lakh retail (kirana) shops, which sustained 16 crore people. The proposal to allow FDI in the retail space was a great tragedy-in-waiting.
The blood of 160 million Indian families will be on the Centre’s hands if it allows foreign direct investment (FDI) in the multi-brand Indian retail market, corporate consultant and economist S Gurumurthy has said.
Addressing the Federation of Karnataka Chamber of Commerce and Industry (FKCCI) on the dangers of FDI in retail market at a city hotel on Tuesday, he said the West was trying to hoist a failed system on India, which had strong familial and savings culture helping it withstand the recent economic turbulence caused by the ‘consumerist America’.
He said India had about 125 lakh retail (kirana) shops, which sustained 16 crore people. The proposal to allow FDI in the retail space was a great tragedy-in-waiting, he said.
“The US economy based on heavy borrowing and virulent consumerism has collapsed. They desperately need to prop up their retail trade in overseas markets, especially India, where retail trade has grown 9.13% annually, higher than the GDP growth of 7.68%, as per the Central Statistical Organisation (CSO),” he said.
While India, like Japan, might resist the new move thanks to the prudent spending habits of the people, it might take away the 5-6% of the premium retail market that caters to the higher echelons of society. “This in itself is a big loss,” he said.
The FKCCI has, in its position papers released on Tuesday, decided to take up a strong stance against the FDI in retail in the interests of the Indian economy. Federation president NS Srinivasa Murthy said that retail trade, the second largest employer after agriculture in India, ought to be protected against the onslaught of transnational companies.
Presenting the retail scenario, Gurumurthy said even Goldman Sachs had come to the conclusion that the Indian retail market was geared up for phenomenal growth. He said the western traders were smacking their lips in anticipation of exploiting this market that, if permitted, would deny 160 million families a source of living. If FDI was allowed, only about 4,4000 people would get jobs in the Walmarts. Indian retail sector was a homegrown enterprise that evolved in the social and cultural setup characterised by familial bond and saving habits, he said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}