New Delhi, Jan 11 (KNN) The Union Cabinet chaired by Prime Minister Narendra recently approved the proposal to allow 100 per cent FDI through automatic route in single brand retail. The traders have termed the decision as a brutal move against the interest of domestic small and medium retailers.

The Confederation of All India Traders (CAIT)  in a press statement said that the permission for a 100 per cent through the automatic route will facilitate easy entry of MNCs (multi-national companies) in retail trade.

CAIT further said that the decision is a serious concern for the small and medium traders that already have tough time amidst growing competition.

Also with small traders gong out of business, there is potential risk of rising unemployment rates in the country, CAIT added.

The retail trade in the country needs upgradation and modernisation, but with such decisions coming in, the retail chain in the country is likely to suffer, the traders body said.

At present FDI up to 49 per cent is permitted under automatic route in single brand retail. Investments beyond that required consent from the government.

Also earlier foreign investments that value more than 49 per cent were subject to certain terms and conditions including mandatory sourcing from the Micro, Small and medium Enterprises (MSMEs). (KNN/DA)