UPA government reassured by BSP chief Mayawati's stand on FDI in multi-brand retail

NEW DELHI: On the eve of the Lok Sabha debate on allowing FDI in multi-brand retail, BSP chief Mayawati expressed reservations on the issue, but left room to make the government feel safe on the vote.

Speaking out after a long time, Mayawati, who has 21 MPs in the Lok Sabha, said that though she had strict reservations about the efficacy of FDI in retail, she appreciated the fact that the policy was left to be implemented by state governments.

"Also, I am mindful of the fact that by supporting the BJP-sponsored motion against FDI, I could be ranging on the side of communal forces," she added.

In the past, BSP's arch rival Samajwadi Party too had said that it would support the government, despite its problems with FDI in retail, to prevent 'communal forces' from gaining traction.

Mayawati said she was not against the idea of FDI as, "foreign loans and FDI are two options through which a developing country can improve its economy. Due to lack of resources, development cannot take place. So, developing nations have to take loans or depend on FDI. But there is a limit to the amount of loan a country can take. FDI then is the only other option. Many countries have taken the help of FDI to improve their economy," she noted.

However, she cautioned that FDI should be allowed only with certain caveats. "While one section and the government believe FDI will bring big benefits, those opposed say there will be big losses due to it. No decision should be taken in a hurry and without checking all aspects. Our suggestion to the government would be to study its impact on Congress-ruled states, do a deep analysis and then proceed further," Mayawati said.

She pointed out that countries like Thailand and Malaysia invited FDI, but the results were not very good and their economies suffered. Mayawati said India needs to look into which sectors FDI should be allowed as it may have an adverse impact in some areas. Her stance mirrors much of what the Samajwadi Party, another party on whose numbers the government is depending, is saying on the matter.

As of now, government managers are viewing Mayawati's statements in positive light. The fact that she appreciated state governments being left with the option to implement the policy and her professed antipathy to a BJP-sponsored motion are all signs that she would vote with the government or at least abstain from voting.