The issue of Manmohan Singh Government’s decision to allow 51 percent FDI in retail sector echoed inside and outside the Delhi Assembly on Wednesday. The BJP members demanded an assurance from the Sheila Dikshit Government not to allow FDI in retail in the Capital. On the other hand, Chief Minister Sheila Dikshit strongly supported FDI in retail, saying the entry of giants like Walmart will not affect small-time traders or neighbourhood grocery shopkeepers in the capital. Dikshit also slammed the opposition saying they have rejected FDI without understanding it.

As soon as the House began its proceedings, Leader of Opposition professor Prof Vijay Kumar Malhotra raised the issue of FDI and sought clarification from the chief minister on her remarks to this effect. Malhotra said that the opposition has given notices to this House for special short duration discussion. Prof Malhotra said if a foreign company like Walmart were to come to Delhi to start retail business, millions of small retailers would go bankrupt and the overall business in Delhi will be ruined. The BJP leader said that the Chief Ministers of several States such as Uttar Pradesh, Madhya Pradesh, West Bengal and Tamil Nadu as also all the other BJP-ruled States have already declared that they would not allow any foreign company to start retail business in their State. “That’s why they are urging Dikshit to clarify her stand and follow suit,” he said.

Later, Dikshit slammed the BJP for not allowing the House to function, saying that the decision to allow 51 per cent Foreign Direct Investment (FDI) was taken by the Centre after “much deliberation”. “I don’t know why there is so much opposition to the decision (to allow FDI in retail sector). It was taken after much deliberation. The decision will help everybody. Small-time traders will not be affected because of this,” she said.

Dikshit said the entry of foreign retail brands will help the consumer as well as the country’s economy. “It is not that if Walmart comes, the business of small-time traders will be affected,” she said. Criticising Dikshit’s statement, former BJP president Dr Harshvardhan said that the Government is wrong when it states there will be no impact on small traders.