The move would also have an adverse bearing on agriculture as it would end the economic autonomy of farmers who would be left at the mercy of multi-national companies, Joshi told reporters here.
He said allowing FDI in retail would facilitate multi- national companies to force closure of traders in retail.
The retail trade was the most dependable sector for creation of jobs after agriculture and India had the largest retail trade network in the world, Joshi, who is on a three-day visit to Bihar, said.
He also alleged that the Indian economy was deteriorating due to faulty policies, while production was on the decline and the Indian currency devalued because of the economic policy adopted by Prime Minister Manmohan Singh.
He claimed the Prime Minister's statement that the base of Indian economy was very strong was not dependable.
"PM's statement that the Indian economy is very very strong is not dependable at all," he said.