FDI in retail: Manmohan Singh opposed FDI in 2002, BJP produces letter

NEW DELHI: BJP on Tuesday used a 2002 letter written by then Opposition leader of the Rajya Sabha Manmohan Singh to blunt Congress’ charge that the then NDA government had travelled some distance on allowing FDI in retail trade.

BJP leader Arun Jaitley, who rejected Congress’ claim that the then government led by BJP had attempted to change the retail policy, said Manmohan Singh had amplified NDA’s line against allowing FDI in retail.

In a letter to the chairman of a Mumbai-based trade body on December 21, 2002, Singh had said that the issue was raised in the Rajya Sabha on December 19. “The finance minister gave an assurance that the government had no proposal to invite FDI in retail trade,” Singh had said in his letter.

Jaitley also used speeches Kamal Nath and the then chief whip of Congress PR Dasmunsi to drive home his party’s point that the charge of opportunism on retail trade should be directed at the ruling side. In a speech in the Lok Sabha on December 16, 2001, Dasmunsi had said that any proposal to allow FDI in retail would be an “anti-national” step.

“The retail sector in India is dispersed, unorganised and labour intensive. It is not desirable to lift the ban on FDI in retail trade,” Dasmunsi had said. The BJP leader said his party’s opposition to retail FDI has been prompted by its concern for the domestic manufacturing sector.

“Our manufacturing sector, at best, is modest. International investors will source internationally and most merchandise sold in the first instance would be sourced from the low-cost economies of the world. It will be ill-advised to open the sector till such times we can implement effective reforms to reduce the cost of our own manufacturing by introducing steps such as affordable interest rates, better infrastructure, better trade facilitation and low cost of power,” he said.