Naysayers should not deny states that want FDI: Comm Min - Moneycontrol.com

The opposition today launched an all out attack against the government on the recent cabinet decision to allow foreign direct investment (FDI) in multi-brand retail.

Speaking to CNBC-TV18's Rituparna Bhuyan, Commerce Minister Anand Sharma says that FDI-funded stores will have to mandatorily source 30% of their total procurement from Indian SMEs. He says that it was not obligatory for states to have FDI-funded retail stores, but those states that are unwilling should not pressurise other states to block the reform.

Ultimately, the trade license is given by the state governments. The shop license comes under the Shop and Establishment Act. The Government of India doesnt give these licenses. There are many states who want to do it. There are many states who are opposed to it. We have to respect both, Sharma says.

Also watch the accompanying videos for Anand Sharma's comments on FDI in retail and the parliamentary proceeding.

I would have been happy if parliament functioned and this issue was raised and the government was given an opportunity to allay apprehensions or reservations which the opposition has, he says.

He further says, If there are bonafide concerns, I have tied to address each one of them. I have written to the leaders of opposition in both the houses Sushma Swaraj, Arun Jaitley and the leaders of the parliamentary groups of all the major parties including our allies addressing what has been in the media about their concerns.

Sharma says, We have carefully thought out before taking this step, particularly a policy which addresses the requirements of Indias villages, the needs of the farmers, consumers and micro and small enterprises who stand to benefit immensely. We have also taken in the policy embrace the small retailer of this country because that is one of the concerns which have been expressed. He believes that FDI in retail will create jobs and give a fillip to the manufacturing industry.

According to him, India needs bipartisan understanding, not major initiatives to be trapped in partisan politics. That unfortunately has always happened. I hope that many of the leaders of other parties would help us to create understanding.

Sharma says, farmers stand to gain. They are not getting the remunerative prices for their produce. The consumer pays exorbitant prices. So, these issues are addressed.