FDI in retail: US lobbying started before Cabinet nod, says Sushil Modi

Americans had started lobbying for FDI in retail much before the Union Cabinet cleared the proposal. Disclosing this on the sidelines of the state finance ministers' meet on GST here on Monday

NEW DELHI: Americans had started lobbying for FDI in retail much before the Union Cabinet cleared the proposal. Disclosing this on the sidelines of the state finance ministers' meet on GST here on Monday, Bihar deputy chief minister and senior BJP leader Sushil Modi said American embassy officials met him in Patna recently asking him to open the doors for Walmart and Tesco.

Modi said he told the American diplomats that Bihar did not require major retail chains. "US embassy officials had met me in Patna... In Bihar, Walmart is not required," he said when asked about the issue of FDI in retail.

While FMs from Tamil Nadu and West Bengal toed their CM's line of opposing FDI in retail, some FMs from Congress-ruled states steered away from the controversy. Delhi FM A K Walia said he had not yet discussed the matter with the chief minister and only the CM would be in a position to comment on it. Among other Congress-ruled states, while Kerala has taken a divergent view to the Cabinet decision, Haryana has said the matter needs thorough discussion before the state takes any decision.

"Bihar government has taken a stand. We are of the opinion that organisations like Walmart, Tesco are not required at this stage as it will hamper small shop owners and farmers," Modi said.

He said Bihar had already conveyed its stand on the FDI issue and so had the BJP. "We are opposed to the idea and my stand is the same as that of the party," Modi said. He, however, said this was not part of the agenda of the empowered group of state FMs discussing the Goods and Services Tax (GST).

Modi's statement is likely to give more firepower to the opposition attack on UPA on the issue of FDI. Parliament was adjourned on Monday over the issue, with opposition parties blaming the government for the unilateral decision.
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Gujarat FM Saurabhbhai Patel concurred with Modi and said his government's stand was the same as that of the central leadership.

West Bengal FM Amit Mitra said Trinamool Congress was opposed to FDI in retail. "We have no evidence to support that it will be beneficial for small businessmen," he said.

The government, however, put up a brave face in view of the mounting attack. Commerce minister Anand Sharma called a press conference on Monday to say the decision was taken after consultation with all stakeholders. "Policy in multi-brand retail holds the potential of transforming rural economy and unlocking supply chain efficiencies in the agri-business," he said.
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