CAIT EXPRESSED DISPLEASURE FOR GOVT NOT TAKING ANY ACTION ON WALMART DEAL
In a strong worded communication sent today to Shri Suresh Prabhu, Union Commerce Minister , the Confederation of All India Traders (CAIT) sought to know as to what steps the Government has taken to scrutinise the deal of Walmart-Flipkart or as usual the Govt has kept its eyes & ears closed irrespective of the fact that whether deal is violating any law or FDI policy of the Govt. The CAIT as a first step is moving to Competition Commission of India for filing its objections to Walmart deal.
CAIT Secretary General Mr Praveen Khandelwal said that Important issues of FDI policy, cyber security, apprehension of using e Commerce for entering into retail trade by circumventing the law etc are involved in the deal and looking at the stiff opposition from trade bodies, online vendors & others, the Govt must rise to the occasion and scrutinise the deal in depth of it. It is highly regretted that so far Government has not taken any step to consult the traders despite lodging their objections with the Commerce Ministry. Such an attitude indicate the turning balance towards MNCs at the cost of ignoring the domestic retail trade. It is much against the BJP manifesto of 2014 which has committed no encouragement to FDI in retail. It appears that Government has taken a u turn to its declared commitment.
Mr Khandelwal further said that sadly in last 4 years no steps have been taken by the Government to ensure speedy & stimulated growth of domestic trade whereas several steps have been taken to encourage MNCs to enter into retail trade of the Country. The Walmart Flipkart deal will prove to be a nightmare for retail trade & economy of the Country. There will be enormous job losses and an uneven level playing field will be created with such deals. It’s an open fact that in US, Europe etc, the financial lending entails an interest rate from 1.5 to 2.5 percent only whereas in India the Finance is lend by the Banks from 12 percent to 20 percent per annum. This difference in interest rates in itself is enough to kill the domestic trade. The Govt should take steps to bridge the gap for maintaining equal level playing field and to encourage healthy Businesd practices in the Country