30.11.11

The PM on FDI in Retail





If the loud chorus of protest and dissent against UPA government's decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail was expected to push prime minister Manmohan Singh and his colleagues on to the back foot, then it has failed. The government seems more than resolved and it is convinced of its virtues as well. The opposition cannot hope to browbeat the government through sheer pressure tactics. Speaking at meeting of the Indian Youth Congress (IYC) here, Singh said, " We have not taken this decision (permitting FDI in retail) in haste, but after a lot of consideration. It is our firm conviction that the decision will benefit our country."Singh was firm and combative. He said if some state governments — indirectly referring to BJP-ruled states, AIADMK-ruled Tamil Nadu and TMC-ruled West Bengal, which have all voiced opposition — did not want FDI in retail, then they have the option to opt out.The Centre's decision relates to policy and it is left to state governments to allow the foreign players to set up shop because the laws relating to opening shops and showrooms and buying grain from farmers falls under the purview of the state governments. Addressing the meeting earlier, finance minister Pranab Mukherjee explained the strengths and stresses of the economy and was loud and clear that FDI in retail is both important and beneficial to the country. "FDI in retail will ensure that India's economic growth continues," he said.

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