Why Manmohan Singh is so Adamant on FDI?

By Suman Ravikumar, SiliconIndia   |   Wednesday, 30 November 2011, 12:40 Hrs   |    34 Comments
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Bangalore: "FDI in Retail," a key word which is a buzz everywhere so popular that even newspapers and Google might consider to have a fragment of its large database preordained for it. The introduction of foreign retailers into the humongous potential market of India has become the "Apple of the eye." What makes the topic even more debatable is Prime Minister Manmohan Singh's adamancy to bring in the phirangis when there are many other grim issues that are in dispute to be heeded - inflation, the slowdown of the economy and the rupee depreciation has been an objective to criticize the PM. Leaving the elucidation on RBI and India's think tanks, the PM has personally got down marching his way for the FDI. Why?

Manmohan Singh

PM insisting on the FDI has put many threats in queue. Manmohan Singh's mutinous, yet determined will to bring in the supermarkets of foreign stores will actually make him mislay his allies, will be at the receiving end of collective anger of both the right- and left-wing opposition. Practically his adamancy could end up in potential collapse of the coalition itself, as the Trinamool Congress and the Dravida Munnetra Kazhagam, key allies also demanded a rollback. There is a high probability that if the government does not roll back the policy of allowing 51 percent foreign direct investment in multi-brand retail, BJP will stall Parliament for the remainder of its winter session, which ends on Dec. 21, the same party which once supported FDI in Retail back in 2002 when it was the leading party in a coalition led by former prime minister and key BJP leader Atal Bihari Vajpayee.

"We want a discussion in the Parliament on our adjournment motion on FDI in retail," tweets Sushma Swaraj. "My stand is the same as that of my party BJP & which is in the interest of the nation," tweets Narendra Modi.

"When in power they supported FDI in Retail now they oppose it. They opposed Computerisation when Rajiv Gandhi introduced it," tweets Digvijay Singh. "No one is forcing FDI in retail down anyone's throat. States not interested have right of first refusal. What could be more fair???," tweets Omar Abdullah.

"We have not taken this decision in haste, but after a lot of consideration. We believe that FDI in retail will result in the creation of many new employment opportunities in a range of sectors like food processing, transportation and storage," Singh said while rejecting demands for a rollback of the policy which has stalled Parliament.

"Any government in a democracy should follow the democratic process, especially on such a big-ticket item. They should have taken not only the allies into confidence on this matter but also the opposition, as it affects the entire country. Democracies are all about talking and not about bull-dozing," Dinesh Trivedi, Trinamool Congress leader and railways minister said in an interview to WSJ.

"Only Pranabda! PM not willing to meet his own party MPs and opposition for resolving Parliament logjam on FDI and other issues!" tweets Prabhu Chawla, Editor-in-chief, The New Indian Express.

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