Karnataka Chief Minister Siddaramaiah on Thursday
spoke in favour of foreign direct investment (FDI) in multi-brand retail.
"I don't think there will be any harm if FDI is allowed in retail. Karnataka is not opposed to the idea," he told a meet-the-press programme organised at the Bangalore Press Club.
"The UPA government is of the view that FDI in retail will bring down the prices of essential commodities and, create jobs. There is no evidence to suggest that
these retail chains will cause the closure of
kirana shops. So there is no need for concern," he added.
Siddaramaiah was sworn in chief minister in May after his Congress party dislodged the BJP government in Karnataka.
"Metro Cash & Carry has been in Bangalore for the past 10 years, and I don't think any kirana shop was shut because of that," Siddaramaiah said.
He noted that the new retail outlets
will help local industry by adhering to the minimum sourcing requirement. He also claimed his consent to FDI in retail was not due to any political compulsion from the UPA leadership.
To a question, Siddaramaiah said, the BJP was opposing the FDI in retail for its own sake. When in power, it had pushed for liberalization. "The UPA regime has taken a decision after studying the impact of FDI in retail in other countries," he said.
On allowing fresh mining permits in places in Karnataka where lease-holders had not taken up any development, Siddaramaiah said the government would take a decision in line with the orders of the Supreme Court and the opinion of the court's Central Empowered Committee, as well as that of the Karnataka Lokayukta.
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