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Millennium Post

‘FDI will increase unemployment’

Pointing loopholes in the argument of the government that the state governments have the right to reject the entry of Foreign Direct Investment [FDI] in mutli brand retail, the Bharatiya Janata Party [BJP] on Monday said that the centre has signed bilateral investment agreements, which says that conditions can’t be laid upon on foreign investors.

‘India has entered into bilateral investment agreements with 82 countries. The basic feature of these bilateral treaties is that they accord national treatment to foreign investors. The effect of this provision is that India cannot put any condition on foreign investors which are not applicable to domestic investors,’ said BJP spokesperson Prakash Javadekar. The BJP leader added that the decision to allow FDI in mutli brand retail has shaken the conscience of the nation.

Mentioning a ruling of the Kerela High Court the BJP said, that the left front government had tried to stop corporate retailers by denying them shop and establishment license however, this action of the state government was struck down by the High Court.

‘As there are no restrictions on local retail chains, the restrictions on foreign chains by the states would be declared by the courts as void,’ said Javadekar. The BJP leader alleged that FDI in multi-brand retail will lead to an increase in the unemployment in the country.
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