Issues raised in cabinet meet on FDI to be addressed: Govt

Amidst UPA allies' concerns of job losses because of FDI in retail, the government today said the issues raised in the Cabinet meeting on November 24 would be addressed in the policy fineprint.

Secretary in the Department of Industrial Policy and Promotion (DIPP) PK Chaudhery said, "The rules will be framed which answer the issues raised and decisions taken in the Cabinet."

Asked about the concerns over job losses that may arise because of the entry of global retailers like Walmart, he said, "...increased economic activity leads to more jobs not less."

With UPA key allies Trinamool Congress and DMK airing their stout opposition to the government's decision to open the kirana-dominated multi-brand retail for foreign investment, Prime Minister Manmohan Singh today reached out to them.

Trinamool Congress leader and Railway Minister Dinesh Trivedi and DMK representative and Chemicals and Fertilisers Minister MK Alagiri had opposed the proposal in the Cabinet meeting itself raising concerns over job losses.

On its part, the government has tried to protect interest of micro and small enterprises (MSEs) and farmers by stipulating a condition in the policy that the global retailers will have to source 30 per cent their requirement from Indian MSEs and half of their total investment needs to be invested in the back-end infrastructure like cold storage.

However, concerns persists among trade unions and small traders who have gone today on all Indian bandh protesting the decision.