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The Federation of Karnataka Chamber of Commerce and Industry (FKCCI) said it is disturbed over the Inter Ministerial Group's (IMG) recommendation to allow the foreign direct investment (FDI) in multi-brand retailing in order to tame the inflation.
In a release, the FKCCI President, Mr N.S. Srinivasa Murthy said, “The Inter Ministerial Group on Inflation's report to the Prime Minister is disturbing.”
“We feel that while the Government often has said that the current inflation is also due to the high global inflation, it is rather surprising that IMG is claiming that allowing FDI would tame inflation. We are not sure whether the IMG is aware that even foreign companies have to bring commodities to the Indian market at a higher price and would add to fuelling inflationary pressure,” he added.
Maintaining stance
As it has been maintaining from the time Department of Industrial Policy and Promotion (DIPP) raked up this issue of FDI in multi-brand retailing, FKCCI continues its stance that allowing FDI in multi-brand retailing would lead to huge loss in employment in the retail trade, which is incidentally the second highest employment source in the country.
‘Strengthen supply chain'
“We at FKCCI feel that the Government should take appropriate measures to strengthen the existing supply chain mechanism with the help of Agriculture Produce Market Committee (APMC),” said Mr Murthy.
He is of the opinion that FDI in multi-brand retail trade should not be allowed.
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