BANGALORE, Oct 11: Opposing tooth and nail the proposed opening up of Foreign Direct Investment (FDI) in multi-brand retail, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said it would severely affect the livelihood of more than 40 billion family businesses.
The traditionally family owned kirana shops will be wiped out by the entry of these multinationals who would buy cheaply from the local producers and sell at discounted rates, FKCCI President K Shiva Shanmugam told newsmen here last night. Nearly 160 million people will be hit hard, he added.
Besides the move is also impeded by poor infrastructure, bad roads and inadequate transport system, he added.
However, the FKCCI wholly supported FDI in other sectors including telecom, aviation and infrastructure, he added.
He said the retail industry had great potential for growth and employment. To create an environment for growth of organised retail sector in the state, FKCCI proposed to form a retail committee.
The committee would identify road blocks for its growth and take up with the central and state governments to initiate policy changes to remove the roadblocks.
(UNI)
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