The United Progressive Alliance government appeared determined on Monday not to roll back its decision to permit foreign direct investment (FDI) in the multi-brand retail sector, despite intense pressure from allies and the Opposition alike, not to mention the Congress' Uttar Pradesh unit which faces an uphill task in next year's Assembly polls.
At best, sources said, the government might postpone a decision on its implementation by referring it to an empowered group of ministers.
At the end of an unproductive day, members of the all-important Congress Core Group gathered here for an emergency meeting to draw up a strategy ahead of a meeting Union Finance Minister Pranab Mukherjee will have with floor leaders on Tuesday. The consensus in the Core Group, which includes Prime Minister Manmohan Singh, Congress president Sonia Gandhi, Union Ministers Pranab Mukherjee, A.K. Antony and P. Chidamabaram and Ms. Gandhi's political secretary Ahmed Patel, appeared to be to hold firm. There is a determination in the government not to look weak, so the most that may happen is another round of talks.
The party's managers battled to convince their detractors. Shortly after Parliament was adjourned for the second day on the issue, Dr. Singh met Ms. Gandhi. Then, Commerce Minister Anand Sharma shot off a letter to all major parties, stressing that the new policy would not jeopardise the livelihoods of farmers and traders.
“In the absence of adequate cold chain infrastructure, logistics and transport, our post-harvest losses remain unacceptably high...a complex chain of middlemen have a cascading impact on supply inefficiencies and prices as well,” Mr. Sharma wrote. As a result, farmers failed to get remunerative prices, while consumers were paying more than five times the price secured by farmers.
I guess we still have not shed our fear of the foreign, despite all the progress we
made since 1992. There are Indian business houses already opening stores
everywhere, so how does letting foreign firms invest make a difference? I am now
finding the BJP worse than Congress, I never thought I would say that.
The UPA II seemingly is helt bent to push FDI into retail sector without paying heed to the protests of the opposition and unexpectedly by a few of its allies,which are reported to have given a nod for similar moves in the cabinet meetings. BJP pulls up its socks for the ensuing elections eyeing on the chinks of corruption noticed abundantly in Congress armoury. BJP, expectedly will not risk its political prospects,sparing the rod of opposition against FDI in retail,despite its general concurrence to reforms. Donning the people friendly mantle TMC is also seen in the fray. The recent General Strike against the policies of Congress Govt witnessed the participation of many parties, unheard of in the past. The debate and the heat generated for and against FDI in retail is not without giving the ruling party a reprieve from the sea of allegations of corruption faced by it.
It is not clear about what would happen if FDI is implimented and what are all the way by which our business men would be affected. All most all the state governments are being backed by big businees men who escape from income tax and look for loophole always. Any govt can generate more revenue from FDI as tax which is good for publics.The monopoly of the big businees men should be avoided and the competition in the businees shoud go up to get quality product with reasonable price.
FDI Foreign Direct Imposition
An SC that rules ‘Bail not jail’ in non-bailable offences involving notoriously corrupt ‘top businessmen’ and their accomplices, reduces their punishment – IF proven guilty - to max 7yrs imprisonment, and throws out the door public interest concerns voiced by colleagues in lower courts who continued to oppose their bail and had charged the accused with an offence involving life sentence/ minimum seven years imprisonment.
A Chief Justice who, 3 days later, insists that an ‘independent judiciary is vital to upholding of rule of law in a democratic country' and ‘agree(s) with law minister (ex Corporate Affairs) Salman Khurshid that India must avail of all opportunities to chart its place in the global economy’
A govt. that, on release of all the 2G accused and BJP’s Sukhram, again pushes Parliament for ‘100% FDI in multi-brand retail’ entailing partnerships with those accused of robbing the nation of thousands of crores - so that India is left penniless?
It looks as if the move of the government on FDI for retail has been announced hastily to divert the attention of the public from issues that have been fiercely debated across the political spectrum.
One fails to understand here., as to what or why the opposition is opposing FDI. Is it sheer lack of knowledge or just for political reasons? The world has changed a lot in the past decade, and we have to understand that. I think the common man has understood it very well, its only the political community which doesn't want to accept for selfish reasons.
Take the example of Indonesia.,in spite of suffering heavily in the economic crisis which hit south east asia, it is the only country along with china and India which is showing a remarkable growth. How? They understood the need of the day, and quickly adopted. They understood 'direct investment is an important tool in transferring technology.FDI supports the expansion of domestic firms through transfer of advanced technology.FDI exerts a positive effect on domestic investment and contribute relatively more to economic growth than total investment share does.' Please Politicians step aside., we want to grow.
If we need expertise from other countries to build our supply chain...might as well open up FDI to run our govt to foreigners. why did we ever even fight for independence from british?
The writing's on the wall. The opposition parties should not oppose for the sake of opposition. If farmers are to get their dues, avoid the wastages and multiple sets of middlemen, who do not add value to their produce, it is necessary to invest in market infrastructure. The government cannot afford to do this. It is therefore necessary to bring in FDI into this sector. As a consumer, I certainly want this done.
This is classic progress,Indian style. Merely because the Government introduces a smart idea, the Opposition must not only oppose it but make the Country ungovernable by disrupting Parliament. Now,the Government has decided that it shall proceed anyway and told those States that oppose FDI in retail, to make their choice, one by one, everyone will tow the line. This was the case in '91, when reforms were first introduced in India . This is the sad state of affairs in India
When Government takes any economically prudent decisions the benefits must be articulated well, to educate general public, otherwise the opposition parties who are waiting in the wings will simply politicise he issue as we have seen in the past which has resulted in a total failure of legislative business of parliament . Ruling party must always work in a bipartisan manner to build consensus before tabling the bills for smooth passage of bills. Otherwise we will continue to see gridlock in law-making business of the House. Our Law makers will do well to watch the proceedings of U.S. Senate & Congress to learn the art of debating and conducting business of the House. These are public documents available on U.S.Government Website as both Video and Transcriptions.Our elected representatives do well to watch these and improve their own debating skills and conduct , to avoid ruckus in House that we see often- a poor show of Parliamentary Democracy by Worlds biggest Democracy!
I find it really hard to believe that FDI wont affect livelihoods of Indian traders. Thats a TOTAL LIE.
Also, its not entirely about economics. This FDI also has an underlying propaganda of having a foreign influence on India. Just like the EAST INDIA COMPANY. had during its initial stages They are playing the SAME GAME again by bribing our corrupt Govt officials.
The govt will say that its not going to affect blah blah blah...but dont get fooled.
We wont see the influence straight away, but slowly and surely these foreign corporations will start taking over.
Foreign made goods, genetically modified harmful food, medical drugs backed by profit driven pharmaceutical companies etc will creep into our lives.
SAY NO to FDI in retail.
Can anyone explain what must be the ultimate tail-end price of any commodity to consumer that can be allowed if a farm produce is paid Rs 10/- a Kilo to farmer ? The final price must include Transport, storage & packing, wastage ( should not allowed in populous India) Hamali charges and profit ? We often say supply-demand effect whether factual or artificial. What is the mechanism in place? Professional ethics & professionalism only can save us from negative thinking.
Wonder why this govt is firm about issues like FDI in retail and nuclear
bill and ready to pick up a fight with anyone on these issues, but gives
such a cold shoulder to eradicating corruption ? The former issues are
laden with pluses and minuses, but removing corruption has only
positives.
Or is there a lot of black money involved in FDI in retail as well ?
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