 "CAIT opposes decision to ease norms for FDI in multi-brand")
"...Without consulting any stakeholder or political fraternity, government has issued its diktat to handover retail trade of India to global retailers at the cost of more than 5 crore business establishments in unorganised sector," CAIT Secretary General Praveen Khandelwal said.
The decision will hurt the interest of domestic traders in a big way which would force us to form "an aggressive strategy to protest against this decision" including holding dharnas and protests, he added.
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Yesterday, the government has eased norms for FDI in multi-brand retail, diluting contentious 30% sourcing clause and allowing foreign chains to set up stores in cities with less than ten lakh population.
While declaring to launch a nationwide protest, Khandelwal said the government's decision will prove to be devastating for small traders. Any move to dislodge traders and other sectors of retail trade from their livelihood will be opposed strongly, he added.
As part of the protest, the confederation said, it will observe the 'Quit India Day' on August 9 as the 'Quit Foreign Love Day' during which demonstrations and protest march will be held in all states of the country.
The CAIT has also convened a meeting of its National Core Committee here on August 12 to take stock of the current situation and to declare its strategy against the decision.
In a slew of decisions taken by the Cabinet, investment requirement on back-end infrastructure by a foreign retailer has been kept at 50% of the first tranche of investment only.
The mandatory requirement is that foreign retailers have to bring in a minimum of USD 100 million capital for setting up shops in the country.
Also, global multi-brand retailers now will have to source 30% of their products from SMEs only at the time of start of business.