Bihar Chief Minister Nitish Kumar said on Monday it is not possible to accept foreign direct investment in multi-brand retail in the state 'as it is converse to policy of growth with justice'.
"It is our considered view that as the domestic retailing is underdeveloped and is in a nascent stage, it is important that this sector is allowed to grow and consolidate first before any liberalisation," he said in a letter to Union Minister of Commerce, Industry and Textile Anand Sharma.
"We have to be very cautious and careful because at stake is the stablity of vital pillars of our economy-retailing, agriculture and manufacturing," Kumar said.
It needs to be highlighted that the negative effects of FDI in retail in terms of job loss,
displacement of small retailers and undermining of traditional supply chains by the monopoly power of multinational retailers far outweigh the professed benefits, Bihar Chief Minister Nitish Kumar said.
"Therefore, the case for opening up of the retail sector to FDI does not seem to be justifiable and is converse to our policy of growth with justice.
"Thus, in view of the above it is not possible for us to accept FDI in retail in our state," he said.
Finally in the interest of farmers, retailers and consumers, the central government should reconsider its decision for liberalisation of FDI policy in multi-brand retail, he said.
The chief minister said that he had received Sharma's letter regarding the union cabinet's decision for liberalisation of the Foreign Direct investment policy in multi brand retail.
