Opposition thumbs down FDI in retail

NEW DELHI: The Opposition’s response to liberalisation of foreign investment in retail was both belligerent and expected. Joining the Opposition were some of the UPA’s allies, who too had in the past expressed reservations over the need to allow more foreign direct investment in retail. On Friday, MPs belonging to Trinamool and DMK competed with Opposition colleagues to invade the well of both the Houses of Parliament.


“We are against allowing FDI in retail sector. Small traders will get affected by this move,” leader of DMK in the Lok Sabha TR Baalu said. The Cabinet meeting saw arguments between Trinamool’s representative Dinesh Trivedi and Congress ministers. Trivedi insisted that the government should put on record Mamata Banerjee’s opposition to the proposal when commerce minister Anand Sharma informed him that the issue was discussed with her twice in the past week. Trading bodies have decided to organise a nation-wide bandh in the first week of December.

“We are in touch with trade associations across the country on a trade bandh. We will also approach chief ministers of all states and senior leaders of political parties for their support,” Praveen Khandelwal, secretary general of Confederation of All India Traders, said.

Even some Congress ministers were doubtful of the timing of opening FDI in retail. AK Antony, Jairam Ramesh and VB Singh differed with the time-table proposed in the Cabinet note. The lack of enthusiasm by a section of the party is not surprising. The issue could cost it support of the trading community in poll-bound states. The ministers who backed the liberalisation said that it would create more job opportunities and fresh investment in rural infrastructure.