BANGALORE: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI), in a press statement, has welcomed the Union government’s move to suspend 51 per cent Foreign Direct Investment (FDI) in multibrand retail sector. “For socio-economic reasons, FKCCI has resisted the Union government’s decision to allow FDI in the multibrand retail. J R Bangera, president, is happy that the government has now agreed to suspend 51 per cent FDI in retail, till a consensus is achieved among all stakeholders,” said the release. “Given the fragmented farm holding pattern in the country, where majority of the farmers are marginal farmers with cultivated land of less than 1.5 hectares on average, this step would not help them at all,” it said. Also, since the modern agriculture technology has not spread to these marginal farmers, their productivity is low and FKCCI opines they cannot be major partners in this endeavour.The FKCCI also wants the government to note that the infrastructure in India is not well developed as in other countries.Lack of adequate infrastructure with respect to roads, electricity, cold storages etc have further led to the impediment of a well-structured supply chains. The government should take a serious note that there would be no employment loss instead of employment creation, if FDI is allowed in this sector, it said.
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