Welcome investment but wary of FDI in retail: Kerala CM

Oommen Chandy has been MLA for 42 years, a minister several times and Chief Minister of Kerala now twice over.

September was a very busy month for Chandy with Emerging Kerala-2012, the three-day event meant to showcase Kerala as a potential investment destination. But even as Chandy goes about saying that Kerala is ready and hungry for investment, he is also the only Congress CM who has said that his state will not welcome 51 per cent FDI in multi-brand retail. In conversation with CNBC-TV18’s Anuradha Sengupta, Chandy talks about how he balances the complex realities of his beautiful state with the vision he and his party have for development. Below is the verbatim transcript of the interview Q: You hosted in Emerging Kerala 2012 in Kochi in September. Would you say you are happy with the results - some 45 projects and Rs 40,000 crore of investment proposed? A: I am fully satisfied with the outcome of Emerging Kerala 2012. I am not very particular about the number of projects or the total amount of the total projects. The message to the rest of the world is that Kerala is changing. There is a feeling that Kerala is always against investment and it does not welcome investors. So we would like to give a message that Kerala is welcoming investment and investors. I am satisfied because compared to other states, we have achieved a lot in education and health. Unfortunately, we are far behind in infrastructure. Q: You have made a point categorically to say that, ‘it is not a one-off event, it is a transformational occasion in Kerala’s evolution’. On the one hand, you are saying this and you want to put this message out, on the other hand, you are the only Congress CM who says that his state will not accept 51 per cent FDI in multi-brand retail. Do you think a contradictory message is going to go out? A: There is no contradictory message. I know the plus points of FDI. Farmers will get reasonable price for their agricultural products and consumers will get the quality goods at a reasonable price. Q: Jobs will be created, which is very good for Kerala. A: I know but at the same time, lakhs of families, especially from the middle class, have no other way to live. They are not in a position to get some employment; they cannot go to any factory and work as a worker. Being from the middle class, they are not ready to work in such working class. We are not in a position to absorb their grievances. We have to take some more time, and slowly, we can have a change. One fine morning, with 51 per cent FDI, we cannot ask them to go behind the curtain. That is inhuman, and that, we cannot sustain in Kerala. Q: But my experience as a visitor to Kerala has been that you have a very sophisticated retail industry. Even in the smallest of places, you will see big shops and there are shopping festivals. Kerala has a very sophisticated retail industry and a shopper culture. In your manifesto, you said you have to provide employment to 36 lakh young people. Would you not then see this as providing opportunities where Kerala’s local retail industry skills would benefit? A: They want to create more employment and we are supporting such a movement. We want to create more employment but not at the cost of a large number of middle class families. We want some more time and a slow process is necessary for this. Q: So you are saying that you are not ruling it out completely? A: At present, we are ruling it out but we admit the plus points of FDI.