12 November,2010 06:58 AM IST | | Bobby Anthony
Even as Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, hinted at allowing foreign direct investment (FDI) in the multi-brand retail sector, local retail traders in the unorganised sector have begun to lobby with political parties to stop global giants like Walmart.
Indian retail traders in the unorganised sector plan to hold protests and dharnas, as well as burn 'FDI effigies' all over the country till February 22.
CAIT members hold up a poster which they displayed during Obama's visit to protest the entry of Walmart in India
The CPM, BJP and other parties have extended their support to the Confederation Of Indian Traders (CAIT), who is opposing the entry of Walmart.
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They have decided to meet in New Delhi on February 22 to February 24, 2011 just before the parliamentary session begins.
The traders also put up banners protesting the opening of the market to Walmart. Some of these posters were seen during US President Obama's visit to the city. The posters read 'Retailers welcome Obama in India but not FDI in retail.'
Speaking to MiD DAY, about Walmart's entry, Viren Shah, the senior vice chairman of the CAIT and president of the Retail Traders' Welfare Association, said, "Walmart can afford to use predatory pricing for years and sell products below their cost price.
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But once, the small retailers in the unorganised sector are wiped out, they will jack up prices exponentially, as they will enjoy a monopoly.
Walmart claims that it will generate 30 lakh jobs, but this will mean that crores of those working in the unorganised retail sector will become unemployed first. You must remember that 97 per cent of the Indian retail is in the unorganised sector."
"We are in talks with all political parties including the BJP and CPM," added Pravin Khandelwal, secretary general of the CAIT.
However, organised retailers seem to be enthusiastic about the FDI in the multi-brand retail sector. Founder and CEO of the Future Group Kishore Biyani said, "I believe that modern retail can help bring down prices and generate more employment. We welcome investment in retail."
"It is a welcome move and will be great for consumers. The Indian retail sector has stabilised. I think FDI must be allowed in the multi-brand retail sector," added Dharmesh Jain, Chairman and Managing Director of Nirmal Lifestyle.
Did you know?
At Walmart, Americans spend $36,000,000 (Rs 160 crore) every hour of every day. With 2.1 million employees worldwide, it is the largest private employer in the US and Mexico.
