The Indian government will soon take a “political call” on the contentious issue of FDI in multi-brand retail as it cannot wait indefinitely, Commerce Minister Anand Sharma has said.
Speaking to reporters here last evening, Sharma, who is here to attend the Global Investment Conference and meet senior ministers in the David Cameron government, said the government is seeking to arrive at a consensus not only among political parties but also among all stakeholders, such as farmers, SMEs and community groups.
“Most chief ministers support FDI in retail. There are particular reservations of the Left parties, who continue to have ideological blinkers. The principal opposition also has a partisan agenda, it changes sides when it suits them,” Sharma said.
“It will be our political decision when to notify it … We can’t wait for unanimity, or we will wait forever. We have taken a decision, we are committed to it, we are trying to build a consensus until which it has been held in abeyance. It will be a political call,” he added.
The decision to allow 51 percent foreign direct investment (FDI) in multi-brand retail was announced in November last year. But its implementation was put on hold after a strong protest from various parties including key UPA-ally Trinamool Congress.
After that, the government has renewed its efforts to forge a consensus on the politically-sensitive issue.
As the UPA supporting Samajwadi Party also opposing the decision, the government would find it difficult to implement the decision.
Recently, JD-U President Sharad Yadav joined hands with Left and SP in opposing foreign direct investment in retail.
Sharma said that while the final decision on FDI in retail for the Centre to take, its implementation is in the domain of state governments.
He hinted that if a particular state does not issue licences after the green signal is given, investors would shift to states that welcomed them.
Asserting that there was no pause in economic reforms, Sharma said if there was such a perception, it was based on inadequate information.
India, he said, remained a top destination for FDI, and added that investors continued to be bullish about India.
In 2011, the minister said, India attracted over USD 50 billion worth of foreign investment, which was the highest it had received in any year.
The projections for the current year were equally promising, he said, and mentioned major recent investments by Ikea and Coke in this regard.
The government, he said, was addressing the ‘manageable’ current account deficit and the fiscal deficit by seeking to increase exports.
He said India’s trade with Africa had risen to USD 67 billion and with ASEAN countries to USD 74 billion. The trade with South American countries has reached 26 billion, while that with the European Union was at USD 110 billion.
Sharma said “intense discussions” were going on between EU and India on a trade agreement, and added that issues had been identified on which further clarity was required.
A formal ministerial meeting was expected in November.
Stating that poor rainfall and drought in India had led to “serious concern”, Sharma said that the output of cereals and rice remained good even if not of the same size as last year.
There was enough rice for the domestic market and reserves, and India continued to export rice. Concern was more for output of pulses and oilseeds, he said.
Sharma said he had a brief meeting with Vodafone CEO Vittorio Colao yesterday, and said the tax issue between India and the company was in the public domain.
“We are all for an early and amicable decision; Vodafone is welcome in India,” he said.
India, he said, was engaged in discussions with the British government on the issue of student visas, in particular the closure of the post-study work visa from April this year.
He noted that there were nearly 40,000 Indian students in the UK, and he would like more to come here for studies.
Sharma said he had also raised with the UK representatives the issue of free movement of Indian professionals, particularly IT professionals, at a time when Indian companies were investing considerably here to set up a base for the UK and EU markets.
Sharma, who met London mayor Boris Johnson and attended a reception by the Prince of Wales last evening, was today scheduled to meet top ministers in Cameron government such as Chancellor George Osborne, Business secretary Vince Cable and Foreign secretary William Hague.
PTI