It is dangerous to allow FDI in retail trade: M Karunanidhi

Terming as "dangerous" the Centre's move to allow foreign direct investment in retail trade, UPA ally DMK Monday demanded the decision be withdrawn forthwith.

DMK Chief M Karunanidhi said, "The Centre's insistence that states should go by the decision cannot be justified. DMK had opposed FDI in retail trade even when the idea was originally mooted".

DMK, which has 18 members in the Lok Sabha, is the second UPA constituent to oppose the move, the first being the Mamata Banerjee-led Trinamool Congress, which also have the same number in the Lok Sabha.

"It is dangerous to allow FDI in retail trade as it will affect lakhs of small traders as well as the poor and middle class consumers. It will also be a cause for economic decline for our country. The DMK has sounded a note of warning in this regard in the Parliament", he said in a statement in Chennai.

Karunanidhi said, "India will suffer very much if FDI in retail trade is allowed with small traders and poor consumers losing their livelihood."

"Through FDI, India will have to face a tsunami-like situation which badly affect the economy. Therefore, great caution has to be exercised", he said.