FDI Hold Back: Business Bows to Politics Again

By siliconindia   |   Friday, 09 December 2011, 03:24 IST
Printer Print Email Email

The infighting in the Congress party and the shrinking power of the prime minister has played to the suspension of the decision. BJP leader Arun Jaitley said the decision was taken over pending demand from the European Union and said the UPA members were divided on the issue.

The industrialists feel that the second term of UPA is killing business in India, not just the FDI rollback, but many issues such as inflation and they feel it’s quite hard to run business with interest rates nearly at 16 percent. At a time when the domestic players are reeling under rising debt levels, opening the retail sector to foreign investors would have been a lifeline for them as it is expected to bring FDI inflow into the country as big bas $15-20 billion over the next 10 years. It was in this line of thought, Tata Group Chairman Ratan Tata tweeted, “Political differences and vested interests should never be allowed to stand in the way of India’s economic progress."

Nonetheless, the optimist hopes that the logjam over the issue and the current state of pause would end up like the nuclear deal where the government put the deal on hold initially only to revive and make it happen.