CAIT HAS SENT COMMUNICATION TO PM
The Confederation of
All India Traders (CAIT) in a communication sent today to Prime Minister Dr.
Man Mohan Singh has drawn his attention towards the Notification of allowing
FDI in Retail which has given unusual and extraordinary benefits to global
retailers which will prove to be much draconian to Indian Small Industries.
The CAIT has also
expressed deep anger over the role of Industry bodies like Ficci, Assocham and
CII who have never raised even a single word about the most detrimental
provision of FDI Notification for Indian Small Industries rather supporting the
FDI in Retail which may accrue benefit to Indian Corporates. These bodies
do have sizeable number of Associations of small industries and it was
imperative upon them to object such an unjustified clause but instead they
prefer not to even inform the small industry about this provision.
CAIT Secretary General
Mr. Praveen Khandelwal while inviting attention of the Prime Minister towards
the clause of 30% procurement of goods from small industries said that the
basic fundamental of the clause has been diluted to the extent that will enable
the global retailers to win over the Indian Small Industry which over a period
of time will suffered self-death.
Mr. Khandelwal said
that though it has been stated in the Notification that the Foreign Investor
shall have to procure 30% material from Indian "small industries" but
the procurement requirement would have to be met in the first instance as an
average of first five years beginning 1st April of the year in which first
tranche of FDI is received and.from 6th year this requirement would have to be
met on annual basis.
He said that it
makes amply clear that global retailers will be free to outsource even 100% of
their procurement from anywhere over the globe during at least first four years
or even in fifth year as well but they have to procure 30% of their purchase
from Indian "small industries" during any time between five years. No
yearly procurement has been made mandatory to the extent of 30% from first year
of their operations of business activities.
The said provision of
the Notification will prove to be much detrimental to the interest of Indian
small industries due to the fact that if 100% outsourcing is made by global
retailers in even first four years, they will outsource cheapest goods from
anywhere over the globe and will dump the Indian market with such goods. Such a
situation will create an uneven level playing field where having limitations on
every aspect, the Indian small industries will not be able to compete with them
and as a result of which the very existence of the Indian small industries will
not be able to survive. As a result of which closure of small industries cannot
be ruled out and not only the small industries but even the workers and other
class of people earning their livelihood from small industries will also lose
their job and mass scale of unemployment will be generated.
The CAIT has appealed
the Prime Minister to take serious cognisance of the matter and withdraw the
said notification in the larger interest of the Country. It is also suggested
that an open debate should be carried out by the Government with an open mind
with all stakeholders and political parties to assess the merits and demerits
of FDI in Retail.
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for
further details please contact CAIT Secretary General Mr. Praveen Khandelwal
@9891015165
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