People's Democracy

Oppose Wal-Mart’s Backdoor Entry into India

The Polit Bureau of the Communist Party of India (Marxist) issued the following statement on November 28, 2006.

THE CPI(M) strongly opposes the deal struck between Wal-Mart and Bharti Enterprises which is in effect a backdoor entry of FDI in Retail Trade. FDI in Retail Trade is not permissible under the existing policy on foreign investment in India. The Wal-Mart’s franchisee agreement with Bharti Enterprises is an attempt to circumvent existing policy regulations to gain a foothold in the Indian market.

The CPI(M) reiterates its opposition to the entry of giant MNCs in Retail Trade because it would cause massive displacement of unorganized retailers across the country besides squeezing domestic manufacturers and farmers using their monopoly buying power. Expansion of the Wal-Mart chains has caused massive closure of small stores and pauperization of poor communities even in the United States. In the context of massive unemployment existing within the country, such employment displacing FDI is the last thing that the Indian economy needs at the moment. In fact what is urgently required is a strong regulatory framework for the domestic organized retail sector, which is expanding at a rapid rate.

CPI(M) had earlier expressed its opposition to the policy announcement made by the UPA government allowing FDI in Single Brand Retail as well as FDI in Warehousing and Wholesale Trade. These steps by the Government were all meant to eventually pave the way for MNCs like Wal-Mart to make an entry into the Retail sector. 

The CPI(M) calls upon the UPA government to immediately intervene and ensure that the backdoor entry of Wal-Mart is prevented. The Polit Bureau of the CPI(M) calls upon all parties, trade unions and mass organisations opposed to FDI in retail to join hands and launch a nationwide movement to prevent the entry of Wal-Mart and other multinational retailers into India. (INN)