12. NO TO FDI IN DELHI

12.

 NO TO FDI IN DELHI

FDI means Foreign Direct Investment. Foreign firms can buy majority stake in Indian firms and set up shops to directly sell their products to customers. FDI provides a large range of choice to customers. But is has been seen in many countries that this has led to unemployment. Small store owners will lose their livelihood.

In 2012, Prime Minister Manmohan Singh threw open the $500 billon retail industry to foreign investors, allowing companies like Wal-Mart, Tesco PLC to own major stakes in local chains for the first time.  The choice whether to allow FDI or not is left to the state government. The companies must get the permission of state government to open stores.

 Retail industry employs around 35 million people out of which 90% come under unorganized sector controlled by local shopkeepers. This is expected to rise by another 15 to 30 million in the next decade. The local traders and shop keepers and small entrepreneurs are worried about losing their job if FDI is allowed. Kejriwal promised not to allow FDI in Delhi to protect small store owners.

Delhi consumers are one of the top consumers and hence Delhi is a major attraction to foreign firms. This makes Delhi one of the biggest receivers of FDI in India.  

There is a huge unemployment problem in Delhi. AAP thinks that FDI will increase unemployment.

WORK DONE IN DELHI REGARDING NOT TO ALLOW FDI IN DELHI

After becoming the CM of Delhi, Kejriwal withdrew approval given by the former CM Sheila Dixit for FDI in multi-brand retail in Delhi. Kejriwal said that allowing global retail chains like Wal-Mart and Telco to set up shops will result in large scale loss of jobs.  Kejriwal also said that AAP is not against FDI. He said that it is something that has to be has to be decided on sector to sector basis. He said that he will soon meet the industrialists to discuss the problem.

Kejriwal wrote a letter to minister of Commerce and Industry that AAP did not support the liberalization of retail sector for the capital. He said that Delhi is not yet ready for FDI due to huge unemployment problem.