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'FDI in retail won't hurt small retailers'

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CIOL Bureau
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NEW DELHI, INDIA: Union Minister of Micro, Small and Medium Enterprise (MSME), Virbhadra Singh, has said that the Union Cabinet's decision to allow FDI in multi-brand retail will not impact the small retailers in the country.

Inaugurating a franchise and retail based event here on Friday, the minister further further said the entry of MNCs are restricted to cities with more than one million population.

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Also read: Don't politicise new FDI policy: CII

“India has retailers in every village, city and they (multi-national retailers) cannot open so many stores. At the most there will be 50 stores which will not effect the small retailers,” Singh said. “The entry of MNCs into the sector will not pose a threat to the small retailers in the hinterland as the FDI will only be allowed in cities with population of one million above, that too after the state government’s permission.”

The minister's defence comes in the wake of huge protest by the Opposition parties and some of the allies in the United Progressive Alliance (UPA) for allowing foreign direct investment (FDI) in multi-brand and 100-per cent equity in single brand retailing.

“States which want FDI have the choice to give the permission, if they do not want too, they will not, there is no compulsion,” he noted. “FDI is going to help the country and the big retailers have to source 30 per cent of all procurement from medium and small enterprises, this will create more employment,” he added.