Several states, including Congress-ruled Haryana, have expressed concern over the possible impact of allowing foreign investment in retail and questioned the claims of the Centre that it would generate more jobs.
While the NDA-ruled Bihar and Gujarat are opposed to permitting FDI in retail, Haryana and West Bengal said the decision will impact small traders.
"As far as retail sector is concerned there are lot of people like small traders who naturally in the long term will be affected... But to what extent that we have not studied," Haryana Finance Minister Kiran Choudhry told reporters here.
Echoing views, Gujarat Finance Minister Saurabh Patel said, "We see a lot of unemployment [being] created in the retail sector and for a lot of small scale manufacturer it will be harmful."
Congress in Kerala has also been opposing FDI in retail fearing that the opposition Left would capitalise on it by weaning away small and marginal retail shop owners from its supporters.
Last week, the Cabinet had approved 51% FDI in multi-brand retail and 100% in single brand, thereby allowing foreign players like Tesco and Walmart to open shops here.
"We have no evidence to support that it will be beneficial to small traders," West Bengal Finance Minister Amit Mitra said.
Bihar Finance Minister Sushil Modi said, "I never said we welcome Walmart [in Bihar]. We feel that Organisation like Walmart and Tesco are not required in Bihar as it will hamper many small traders."
