The Centre today justified its decision to allow 51 per cent FDI in multi-brand retail trade, saying it was allowed keeping in mind the economic development of the country, Union Minister of State in PMO V Narayanasamy said today. Talking to reporters at the airport here, he said considering the country’s economic development and the vast job opportunities it would generate, the government decided to allow FDI in the retail sector and in aviation sector.
Apart from attracting a lot of investments in several sectors, the farmers would benefit directly by this, thereby avoiding involvement of the middlemen.
He also denied reports that some of the key allies of the UPA, which had strongly expressed their opposition to the FDI and the steep hike in prices of diesel, would support the September 20 nation-wide strike call given by the BJP-led NDA.
Mr Narayanasamy said the diesel price hike was inevitable. On the Cauvery river water row between Tamil Nadu and Karnataka, he said Prime Minister Dr Manmohan Singh has convened a meeting of the Cauvery River Authority on September 19. During the meeting, the Prime Minister would analyse the present water storage position in Karnataka and the shortfall faced by Tamil Nadu and insist Karnataka to release water. The Supreme Court had directed the Karnataka government to release one tmc ft of water to Tamil Nadu till the CRA meeting was convened. “The Prime Minister will definitely insist Karnataka to release waters to Tamil Nadu for irrigation in the CRA meeting,” he added.
—UNI