FDI in retail will not harm small traders, says PM - India News and Travel Times Provides India-centric and other News and Features

Prime Minister Manmohan Singh has defended the UPA Government's move to allow foreign direct investment in retail, saying it would not hurt the small traders. "Organised, modern retailing is already present in our country and is growing. All our major cities have large retail chains. Our national capital, Delhi , has many new shopping centres. But it has also seen a three-fold increase in small shops in recent years," said Singh in his address to the nation on Friday. "In a growing economy, there is enough space for big and small to grow. The fear that small retailers will be wiped out is completely baseless," he added. Asserting that the opening of organised retail to foreign investment will benefit the farmers, Dr. Singh said: " According to the regulations we have introduced, those who bring FDI have to invest 50 percent of their money in building new warehouses, cold-storages, and modern transport systems." "This will help to ensure that a third of our fruits and vegetables, which at present are wasted because of storage and transit losses, actually reach the consumer. Wastage will go down; prices paid to farmers will go up; and prices paid by consumers will go down," he added. The Prime Minister said the growth of organised retail would also create millions of good quality new jobs. Pointing out that the government recognises that some political parties are opposed to this step, Dr. Singh said: " That is why state governments have been allowed to decide whether foreign investment in retail can come into their state. But one state should not stop another state from seeking a better life for its farmers, for its youth and for its consumers." "In 1991, when we opened India to foreign investment in manufacturing, many were worried. But today, Indian companies are competing effectively both at home and abroad, and they are investing around the world. More importantly, foreign companies are creating jobs for our youth -- in Information Technology, in steel, and in the auto industry. I am sure this will happen in retail trade as well," he added. Asserting that the UPA Government is the government of the 'aam aadmi', Dr. Singh said: "In the past 8 years our economy has grown at a record annual rate of 8.2 per cent. We have ensured that poverty has declined much faster, agriculture has grown faster, and rural consumption per person has also grown faster." "We need to do more, and we will do more. But to achieve inclusiveness we need more growth. And we must avoid high fiscal deficits, which cause a loss of confidence in our economy," he added. The Prime Minister further promised that he would do everything necessary to put the country back on the path of high and inclusive growth. "But I need your support. Please do not be misled by those who want to confuse you by spreading fear and false information. The same tactics were adopted in 1991. They did not succeed then. They will not succeed now. I have full faith in the wisdom of the people of India ," said Dr. Singh. Emphasizing that a lot more needs to be done to protect the national interest, Dr. Singh said: "We have much to do to protect the interests of our nation, and we must do it now. At times, we need to say "No" to the easy option and say "Yes" to the more difficult one. This happens to be one such occasion. The time has come for hard decisions. For this I need your trust, your understanding, and your cooperation." "As Prime Minister of this great country, I appeal to each one of you to strengthen my hands so that we can take our country forward and build a better and more prosperous future for ourselves and for the generations to come," he added.

FDI in retail will not harm small traders: PM