Ummid Assistant

Jamia Millia launches courses on China, Afghanistan

IGNOU launches value education programme for teachers

Welcome Guest! You are here: Home National

Peace in parliament after FDI put on back burner, India Inc disappointed

Wednesday December 07, 2011 10:10:12 PM, IANS

Related Articles

Manmohan Singh, the reformer, is back

In contrast to the courage shown by the prime minister and the party in charting a new course, the opposition has again exposed itself as comprising opportunistic curmudgeons   

No loss of face in decision to pause FDI in retail: Congress

Industry feels let down with recall of FDI in retail

FDI in retail: Time India removed its blinkers

Let politics not block valuable foreign equity retail: Pranab

Shopkeepers protest but shoppers don't mind foreign retailers

Cong, opposition fight over FDI continues; traders call nationwide protests

PM firm on FDI decision, says it is pro-people

New Delhi: Thirteen days after what was seen as a major reformist move, the government Wednesday was forced to suspend its decision on foreign investment in retail following opposition from both within and outside the coalition, allowing peace to return to parliament but leaving India Inc. and sections of the middle class disappointed.

Finance Minister Pranab Mukherjee told an all-party meeting that the government had suspended the move till a consensus was reached with "stake holders" - state governments and political parties.

The opposition parties as well as the Trinamool Congress and the DMK - Congress-allies in the United Progressive Alliance (UPA) government - agreed to the formula and thus paved the way for smooth functioning of parliament that was logjammed since the winter session opened Nov 22.

In his brief statement in parliament, Mukherjee read out the resolution passed in the all-party meeting.

"The decision to permit 51 percent FDI in retail trade is suspended till a consensus is developed through consultation among various stakeholders," a one-paragraph resolution passed in the meeting said.

The announcement comes nearly two weeks after the government decided to allow 51 percent foreign direct investment (FDI) in multi-brand retail and 100 percent in single-brand retailing. This would have allowed global supermarket brands like Wal-Mart, Tesco and Carrefour to set shops in India's potentially lucrative domestic market estimated at $470 billion.

The government may have won peace in parliament. But its backing down on a key reform decision that was being closely watched by international investors has left it hugely embarrassed, indicating the government's inability to go for an aggressive policy pursuit after months of what was seen "policy paralysis".

The latest announcement gave way to despair in Indian industry that had gone euphoric over the government's FDI decision, hailing it as the one that signalled a movement forward in the reforms process and that would help farmers, consumers and small and medium enterprises.

India Inc felt let down and said it sent wrong signals overseas.

"The government decision to hold back (FDI decision) is deeply disappointing," said Harsh Mariwala, president, Federation of Indian Chambers of Commerce and Industry (FICCI).

"It is a highly regressive move," Mariwala added.

Chandrajit Banerjee, director general, Confederation of Indian Industry (CII), said the backing down would have a strong negative impact on investors' sentiment.

"FDI in multi-brand retail would have multifarious advantages to farmers, micro, small and medium enterprise, consumers and government alike," he said.

Leading industry lobby Assocham said it was "a clear case of missed opportunity that will dent the country's image as a global investment destination.... It would have created over 10 million new jobs in three years, curbed agricultural wastage, benefited farmers with better prices for their produce and brought down prices of many commodities for consumers."

The ruling Congress put the blame on coalition compulsions. "In a coalition enough consultation may not be enough... We hope to arrive at some constructive resolution. In coalition, (one has) to walk that extra mile," party spokesperson Manish Tewari said.

Experts are of the view that opposition to the FDI was for political reasons.

"The opposition is protesting for political reasons, at one point of time they were also supporting it. If not today, in future FDI in retail will be a realty," Nisar-ul-Haq, who teaches political science at the Jamia Millia university, told IANS.







Bookmark and Share

Home | Top of the Page


Note: By posting your comments here you agree to the terms and conditions of

Comments powered by DISQUS







Top Stories

Draw line between objectionable and controversial, say websites

Even as Communications Minister Kapil Sibal Tuesday said India will not tolerate objectionable content  

Netizens tweet foul as India targets 'objectionable' content

Hate censorship, but freedom often misused: Omar


  Most Read

Pak Pres Zardari suffers heart attack, may quit: Report

Pakistan President Asif Ali Zardari, who abruptly left the Pakistan capital for Dubai, has suffered a minor heart attack  

'Zardari left though army doctors said he was fine'

Rs.7 million released for Muslim youths wrongly held

Perhaps in the first instance of victims of police torture in a terror case being paid compensation in India, Andhra Pradesh has released Rs.7 million for innocent Muslim youths arrested and tortured in the 2007 Mecca Masjid blast case. A day after Chief Minister N. Kiran Kumar  


  News Pick

Bhopal Gas survivors charge police of triggering violence, parading injured women

The survivors have blamed the police of unleashing brutality on them in the shape of cane-charging, lobbing of teargas  

Arabic pamphlet in Britain-Goa flight triggers alarm

A pamphlet published in Arabic found Tuesday in a chartered plane which flew from Manchester airport in Britain to Goa has triggered a security alarm here. The alert comes less than two weeks before Prime Minister Mamohan 

Detentions of Muslim youth begin afresh; kin call Khurshid for intervention

As the indiscriminate arrests of Muslim youth in the name of fighting terrorism begin afresh after a gap of two years, the kin accusing the police of violating Supreme Court 


Picture of the Day

The Prime Minister, Dr. Manmohan Singh and the Emeritus Senior Minister, Mr. Goh Chok Tong, unveiled the bust and the Marker of Pt. Jawaharlal Nehru, at Asian Civilizations Museum, in Singapore on November 20, 2011.

(Photo: M. Asokan )



RSS  |  Contact us


| Quick links



Subscribe to

Ummid Assistant






About us




Government Schemes










Contact us





    Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

2010 Awaz Multimedia & Publications. All rights reserved.