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GOG spokespersons’ statement: FDI in Retail against National Interest

GOG spokespersons’ statement:

FDI in Retail against National Interest: Govt. of Gujarat

FDI in Retail will dislocate the small and unorganized retailers, lead to unemployment

Making the Gujarat government’s views clear regarding the FDI in retail sector, Gujarat government spokespersons Health Minister Jay Narayan Vyas and Saurabh Patel said that Gujarat Government is of the firm view that the recently announced Govt. of India’s policy on ‘FDI in Retail’ will not only dislocate the small and unorganized retailers but also result into unemployment which is against the national interest.

Spokespersons said that earlier, the State Government in its views on the Report of Parliamentary Standing Committee on Commerce in the matter of Foreign and Domestic investments in Retail sector, has clearly stated that illegal practice of Combination and Bargaining sale by the Single Brand Corporate Retails are covered under the Consumer Protection Act, 1986 as ‘Restrictive Trade Practices’ and ‘Unfair Trade Practices’. Moreover, foreign trade investment in retail sector is not allowed and cannot be allowed in the name of ‘Cash and Carry’. Backdoor illegal entry of foreign companies into retailing should be dealt with strongly by the Department of Foreign Investment.

Mr. Vyas and Mr. Patel added that in the context of the likelihood of rise in unemployment due to slide down of retail traders, the State Government has suggested to conduct systematic survey or study to assess the extent of dislocation of small retail traders due to big retailers. Further, such big retailers who indulge into predatory pricing should be banned or removed from the markets.

However, the Ministers said the State Government was of view that there are advantages and disadvantages of domestic and foreign retailers into retail trade for which detailed study is required before taking any decision.

Thus, it is faulty to believe that Gujarat government is supporting the FDI in retail policy and further, in this matter, the State Government subscribes to the views taken by the Central BJP leadership, ministers said.

Sources: Gujarat Information Bureau

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