FDI in multi-brand retail will create more jobs: Tharoor

Ahmedabad: Backing Central government’s decision to allow Foreign Direct Investment (FDI) in multi-brand retail, former union minister Shashi Tharoor today said that it would generate additional employment opportunities.

“Most countries have understood from experience that FDI brings in more investments from abroad. In most countries, FDI is a way of contributing to additional employment,” the former minister of state for External Affairs said on the sidelines of a function at the National Institute of Design (NID) here.

“As more capital comes in, more institutions or shops and stores are established and you need more people to run them. In fact, when the change in development comes you have to look at aggregate good,” he said.

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Tharoor though admitted that the move might affect some domestic businesses initially, he observed that the small shop owners could also benefit and flourish if they change their approach.

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“It is possible that some people might be immediately affected. But larger number will benefit,” he said.

Trying to allay fears surrounding survival of the small shops in the wake of allowance of FDI in multi-brand retail, Tharoor said small shops could do what the big shops could not.

“They (small shop owners) can provide more personalised service. So the small shops that have been there for generations can also flourish if they have different approach than the big shops,” he said.

Defending the Union government on inflation, Tharoor said it was a global phenomenon and the government is doing what is to be done.

He said there was a direct correlation between the higher fuel prices and reigning food inflation.

“Government is doing what is required and would continue doing that. Pranab Mukherjee (Finance Minister) had two days ago made a statement in the Parliament that inflation would come down by March,” Tharoor said.

“One thing is clear that as per the law of supply and demand, everything can not be in the control of the government,” the former minister said.

Tharoor pointed out that the country has done well on the recession front compared to other countries.

“Only India and China are the two big countries which have not been affected by recession. Our rate of growth is over 8 per cent since last few years. Whereas in some countries the rate of growth has been in the negative. If you look at global picture India’s condition is much better,” he added.

PTI