Terming FDI in multi-brand retail as a “double-edged sword,” which needs to be handled “dexterously,” Tamil Nadu Chief Minister J Jayalalithaa today said the Centre’s recent decision was “fraught with dangers,” and her government will not permit it in the state.
Addressing captains of industry at a function where MoUs worth Rs 20,925 crore of proposed investments were signed with 12 companies including four Fortune 500 companies — Hyundai, Nokia, Saint Gobain and Sanmina-SCI, she said her government while attracting investments particularly FDI, firmly believed in being very responsive to its implications.
“FDI is often a double-edged sword, and the government needs to handle it, dexterously. FDI in some fields is purely based on private rationality with the underlying principle — private gain at social loss.”
The recent decision of the Union government to open up the retail business to FDI is one such example, “fraught with the danger of destroying our small business ventures that provide jobs to millions of our people,” she said.
She recalled her government has already opposed the decision and would not permit FDI in retail in Tamil Nadu.