'FDI in retail will cause job loss'

Maintaining its opposition to Foreign Direct Investment (FDI) in retail, the CPI(M) said its view was that allowing foreign players in retail should put 40 million people out of jobs, but, wanted the government to study it deeply to understand the options available to India on the issue.

"Regarding FDI in retail we are not convinced. We welcome FDI to bring new technology, augment production and increase employment opportunities. But we need to remember that four crore people are employed in the sector, whose livelihood could be jeopardised," CPI(M) General Secretary Prakash Karat said at a meeting organised by the Associated Chambers of Commerce and Industry of India (Assocham) here.

Karat said the CPI(M) would like the Indian government to study the outcome of opening up FDI in retail in other countries. Although Karat's position is not new, the feeling in the government has been that against the backdrop of the experiments by the West Bengal government, the CPI(M) might have agreed to FDI in retail subject to certain riders "" that shopping malls financed by FDI could open up only in undeveloped areas to as to act as the catalysing effect for smaller towns.

However, this doesn't seem to be true. Karat also expressed the CPI(M)'s opposition to the setting up of a steel plant in Orissa by South Korean steel major Pohang Steel Company (POSCO).

He said no foreign steel company should be allowed to export mineral ore.

The CPI(M) leader pointed out that the last 15 years of reforms had not been a model for inclusive growth, which is why following the last Lok Sabha polls, the UPA was advised by the Left parties to have a look at past failures.

On the issue of disinvestment of PSUs, Karat said the government must have a comprehensive plan for mobilisation of resources for modernisation and upgradation of state-owned companies.