Stop Wal-Mart's ''backdoor'' entry: CPM tells govt

New Delhi, Nov 28 (UNI) The CPI(M) today strongly opposed the deal struck between Wal-Mart and Bharti Enterprises, and asked the UPA government to immediately intervene and prevent the ''backdoor'' entry of the American multinational retailer into India.

The CPI (M) Polit Bureau called upon all the parties and trade unions opposed to FDI in retail to launch a nationwide movement against the entry of Wal-Mart and other multinational retailers into the country.

''FDI in retail trade is not permissible under the existing policy on foreign investment in India. The Wal-Mart's franchise agreement with Bharti Enterprises is an attempt to circumvent existing policy regulations to gain a foothold in the Indian market,'' the CPI (M) Central Committee said in a statement.

Pointing out that the expansion of Wal-Mart chains had caused massive closure of small stores and pauperisation of poor communities even in the US, the CPI (M) said the American MNC's entry into India would cause widespread displacement of unorganised retailers.

''What is urgently needed is a strong regulatory framework for the domestic organised retail sector, which is expanding at a rapid rate,'' it said.

The statement said the CPI (M) had earlier expressed its opposition to the UPA government policy announcement allowing FDI in single brand retail as well as FDI in warehousing and wholesale trade.

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