New Delhi, November 30: The deadlock on FDI in retail showed no signs of resolution today with government not yielding to the opposition demand for rollback and Prime Minister Manmohan Singh going a step further by strongly justifying the move.
Even as the Prime Minister put up a defence of the decision, it came under attack from a Congress MP who said that it would hurt the poor, traders, hawkers and farmers and demanded a rethink on it.
The Prime Minister said there was no compulsion on states to implement the decision of the Union Cabinet with regard to allowing 51 per cent FDI in retail and there were options available to them for not implementing.
Singh insisted that the decision to allow FDI in retail was aimed at creating jobs, improving remuneration of farmers and enabling import of technology besides benefitting consumers.
“I would .. Like to a mention today of the decision of the government permitting Foreign Direct Investment in Retail. We have not taken this decision in any haste but after a lot of consideration. It is our firm conviction that the decision will benefit our country,” the Prime Minister said while addressing Youth Congress convention here.
He defended the decision taken last week even as Parliament was paralysed for the third day on the issue with Opposition, joined by UPA constituents Trinamool Congress and DMK, being unrelenting on the demand for its reversal. Voices of opposition have emerged from within Congress also.
“We believe that it will bring modern technology to the country, improve rural infrastructure, reduce wastage of agricultural produce and enable our farmers to get better prices for their crops,” Singh said, virtually ruling out any reversal of the decision.
Justifying the decision, Singh said the differential that exists between wholesale and retail prices will reduce and consumers will get commodities of daily use at reduced prices.
“As far as small retailers are concerned, the experience in some other countries suggests that both big and small retailers can easily co-exist in a big country like ours,” he said.
On the fears that the small businesses in the country would be hurt by the FDI decision, the Prime Minister said, “we have put some conditions so that FDI in retail promotes our small industry.”
Most importantly, he said, “we are not forcing anyone to follow this policy. State governments that are not convinced of its usefulness have the means to prevent foreign participation in retail businesses in their states.”
He said FDI in retail will result in creation of many new employment opportunities in a range of sectors like food processing, transportation, and storage.
With a couple of MPs openly raising the banner against the FDI decision, the Congress party has called its MPs for a meeting tomorrow in which Finance Minister Pranab Mukherjee will seek to allay apprehensions on the issue.
Parliament remaining paralysed for the sixth straight day, government made an attempt to break the logjam but both sides remained adamant leading to disruption of both the Houses.
There were no signs of a thaw with Leader of the Opposition Sushma Swaraj declaring that the demand for a discussion through an adjournment motion which entails voting is “non-negotiable”.
At the morning meeting, Leader of the Lok Sabha and Finance Minister Pranab Mukherjee told the opposition leaders since the FDI decision was taken by the cabinet, he has to get back to the Prime Minister before he can say anything.
In the evening, the Prime Minister strongly justified the decision saying it was “not taken in any haste, but after careful consideration”.
It is our firm conviction that the decision will benefit the country, farmers and consumers, he said addressing a Youth Congress Convention.
Congress President Sonia Gandhi, who also spoke at the Convention, did not refer to the FDI controversy.
At the all party meeting in the morning, opposition parties, led by BJP and the Left, stuck to their stand and demanded rollback of the Cabinet decision to allow 51 per cent FDI in multi-brand retail.
Even UPA allies TMC and DMK, along with SP and BSP, which lend outside support to government, demanded that the decision should be revoked.
“We have demanded rollback of the decision. We have been demanding that a meeting of UPA partners should be held every three months. Such matters should be discussed with UPA partners,” Trinamool leader Sudip Bandhopadhyaya said after the meeting.
At the AICC briefing, party spokesman Abhishek Singhvi however, downplayed the opposition to the government’s move by the two UPA constituents saying there is a difference between disagreement and disruption and that Congress has no problem with that.
He accused the opposition of being “irresponsible” and “obstinate” and converting Parliament into an “agitation field”.
“We are open to discussion but not to accepting the conditions as to under what rule it should be discussed. It is for the Chair of both the Houses to decide”, he said.
Meanwhile, a report from Thiruvananthapuram said thousands of shop owners in Kerala today downed shutters in protest against the Centre’s decision.
The dawn-to-dusk strike call was given by the Kerala Vyapari Vyavasayi Ekopanasamiti and Vyapari Vyavasayi Samiti, leading retailers’ outfits in the state.
Reports from across the state said the response to the protest call was total with small, medium and wholesale outlets remaining closed.
–PTI–