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PM has done U-turn on FDI in Retail: BJP

  •   Sun, Sep 30 2012 09:18:49 AM

New Delhi, Sep 30 (PTI): BJP on Saturday refused to buy PM Manmohan Singh's contention that no international pressure was behind the decision to allow FDI in multibrand retail and charged that he has done a U-turn on his own stand till 2004 against the policy.

"It is strange and it is time the Prime Minister clarifies on this. In 2002 and 2004, he had spoken against FDI in multi-brand retail. He has taken a U-turn somewhere between 2004 and 2010," BJP spokesperson Nirmala Sitharaman said.

She pointed out that though in November 2011, the government had assured that it would not take any step on FDI in multibrand retai unless all consultations with all stakeholders have been done.

"Have all consultations been done, Mr Prime Minister? How is it that you have changed your mind and brought this FDI in multibrand retail? Where has that assurance gone today? And how has this U-turn come about?" Sitharaman said.

She maintained that in 2002, Singh had assured the Association of national traders in Mumbai that he was against FDI in multi-brand retail.

Alleging that there seems to be an "overnight change" in Singh's stand and that this appears to have come under US pressure, the BJP leader said "if this is not being done under pressure, what explains Hillary Clinton meeting Mamata Banerjee in the context of FDI in retail?"

She demanded that government clarify its stand on this.

"Are we having in this country a precedent where a Foreign Secretary from some other country comes over and directly interacts with a chief minister who just a few days before had objected to FDI in multibrand retail?" she said.

BJP demanded that Singh owes an explanation as to what are the compulsions under which FDI in multibrand retail is being brought in so hurriedly.

BJP maintained that the country cannot be misled into believing that multinationals like Walmart are coming here to build cold chain links, provide last-mile connectivity or bring benefits to small traders and farmers.

"Having procured in the international market at a cheaper rate, they are coming to utilise our domestic consumers. Are we throwing open the whole system? We will not offer any protection to the self-employed people of this country?" Sitharaman said.

The Opposition asked the Prime Minister not to hurry with this decision under any pressure.

BJP MP and party secretary Balbir Punj charged that though it is clear Singh is working under US pressure he is making a "pathetic attempt" to deny it.

"It is a pathetic attempt by the Prime Minister to deny something which is so obvious and glaring. It is a sad day for the country that the Prime Minister of India has to deny that he is not working under foreign pressure and he does not sound convincing," Punj said.

He charged Singh had staked his prestige and existence of his government during UPA-I on Indo-US nuclear deal issue and has now gone ahead with the FDI in multi-brand retail.

"In the process, he has gone back on the solemn assurance which the UPA-II government had given to the country through a statement in Parliament by the then Finance Minister Pranab Mukherjee that no decision will be taken on FDI in multi-brand retail without taking all stakeholders on board," Punj said.

  

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Comment on this article

  • Maithilee, India

    Fri, Nov 02 2012

    Speaking of Walmart and the whole issue,big retail has not helped in US or S Korea, Brazil at all. Studies have shown the net income of farmers in the US has come down from 70% to less than 4% in 2005.This is because big retail actually brings in a new set of middlemen — quality controller, standardiser, certification agency, processor, packaging consultants etc. It is these middlemen who walk away with the profits and not the farmer.
    Speaking of employment, some Stats :- Indian retail market is estimated to be around $400 billion with more than 12 million retailers employing 40 million people. Ironically, WalMart’s turnover is also around $420 billion, but it employs only 2.1 million people. if Wal-Mart can achieve the same turnover with a fraction of the workforce employed by the Indian retail sector, how do we expect big retail to create jobs?!
    it is not about enjoying the luxury of foreign cars, laptops or technology.. its about creating a balance and not widening the gap in the poor and rich. its about benefits of the whole country not just those who can afford and are willing to pay whatever price!
    not supporting any political party, it is pretty evident that they do what they do for their personal benefits

    DisAgree Agree Reply Report Abuse

  • Joseph F. Gonsalves, Bannur, Puttur / Mangalore

    Mon, Oct 01 2012

    Watch this women while she speaks. She speaks with vengeance and hatred and spews venom. BigMouth smells foul really she is brushing her teach in coalgate.

    DisAgree [1] Agree [2] Reply Report Abuse

  • R Mallar, Kasaragod/ Dubai

    Sun, Sep 30 2012

    Blaan,
    For your info, Indian government has imposed a condition for retail FDIs that they must source the product from India, develop Indian supply chain, spend 50% of the investment in developing storage and other infrastrucucture facilities etc etc. So the typical western model of retail chain won't work.
    The fine print is that these companies will be forced to engage Indian dalal companies, which will be invariably owned by politicians or their cronies.
    And if these companies are allowed to source the products from else where, it will be even worse as Indian non- competitive products will fall flat. Remember how the small scale industries vanished following earlier liberalisation?

    DisAgree Agree [2] Reply Report Abuse

  • Blaan Mendonca, USA

    Sun, Sep 30 2012

    Mallar
    Walmart does not depend on one country product. They have their own distribution center, they import from many countries from all over the world. Therefore the product will be available through out the year. They will match the price of any other store and beat it. Walmart has return policy of 3 months guaranteed on most of the non perishable goods with the receipt. They have around 4400 stores in USA, China, Mexico and Canada. Walmart Super Center price nobody can beat it. Even perishable good can be returned if there is damage, foul smell, bad with quality and with other good reasons.

    DisAgree [3] Agree [11] Reply Report Abuse

  • Christine, Mangalore

    Sun, Sep 30 2012

    FDI definitly has positive aspects specially where the middle class people are concerned. the luxuries of the rich are made available to the middle class now with affordable costs. but poor deffinetly is the looser. they will have neither money for their hard work, nor will they enjoy the luxuries available in the market.

    DisAgree [3] Agree [2] Reply Report Abuse

  • tresa , Mangalore

    Sun, Sep 30 2012

    Look at our country, it is falling in ditches without any foreign investment, share markets have become nil and i think in their minds the whole country people will want India to be recognised internationally, but the sad part is they are opposing the reforms which develops the country. Why the opposition, if it comes to power will not think of these kind of reforms? In heart yes. This is only a stunt of the opposition because the ruling party is doing this. People just think about it.

    DisAgree [2] Agree [8] Reply Report Abuse

  • Jayalaxmi, Mangalore

    Sun, Sep 30 2012

    NIRMALA SITHARAMAN BJP SPOKES PERSON HAS GONE OUT OF HER SENSES. FIRST OF ALL SHE SHOULD LERN OR KNOW WHAT IS FDI AND WHY IT IS USEFUL. IF SHE DOES NOT KNOW ANYTHING SHE SHOULD SHUT HER MOUTH. EVERYONE KNOWS IN OPPOSTION PARTY THAT FDI IS VERY IMPORTANT FOR THE COUNTRY BUT THEY ARE OPPOSING JUST TO FOOL PUBLIC. MAMATA HAS FAILED IN EVERY FRONT. SO NOW SHE IS SHOWING PUBLIC SHE KNOWS SOMETHING.

    DisAgree [3] Agree [18] Reply Report Abuse

  • Dev Sagar, Mangalore

    Sun, Sep 30 2012

    BJP, Trinamool and other opposition parties very well know that the FDI is a very progressive idea and is beneficial to India. They simply want to oppose it because it comes from the Congress ruling party. They think it is their fundamental right to oppose the ruling party at all times and at any cost.

    DisAgree [3] Agree [16] Reply Report Abuse

  • ROBOT KEM, INDIA

    Sun, Sep 30 2012

    The way some of the political party people comment, it looks as though they donot have any economic & financial analysts in their party to advice before commenting like this.

    DisAgree [5] Agree [17] Reply Report Abuse

  • R Mallar, Kasaragod/ Dubai

    Sun, Sep 30 2012

    How the consumers or the farmers will benefitted because of wallmart or carrefour?
    Any business will try to get goods cheaply and sell at highest price allowed by the market conditions.
    As there is a requirement for these companies to invest in facilities and also to cultivate Indian supply chain and the fact that they need to earn in dollors, their break even will be quite high.
    About 30 years back MNCs like Nestle and Cadbury encouraged people to grow cocoa by offering fantastic returns and then dumped the growers when the cocoa plants started yielding.
    I also remember a real story of a Delhi based exporter, who used to export food products to various outlets in Kuwait, in early ninties. Once the Kuwait war started, these exports were stopped. One day, I met him and sympathised with him. He, on the otherhand, was very happy now. He had to supply the entire export and more to two US based companies, who were distributing the same in Kuwait at much higher price. So he had to deal with only two people for payments.
    So the most likely scenario would be that these big brands will use the same supply chain who make a huge cut by underpaying the farmers. For consumers, it will cost more as there will be further mark up! Doing away with middle man is just a dream.
    Another example is that in ninties, the prices of commodities in Gulf used to be about four times higher than India. Now the difference is only marginal. And note that all the liberalisation happened in last two decades.
    At the end, some middle class people might be happy to get more varieties. Poor will remain poorer. For rich it does not matter. Poor - rich gap will widen.

    DisAgree [9] Agree [11] Reply Report Abuse

  • Ronald D, Udupi

    Sun, Sep 30 2012

    Any national trader in Mumbai wants to fill their bags as much as possible by exploiting consumer. Let consumer have a choice. Let them have choice of Wall Mart or local Kirani shop. Let us not go back to Amby and Premier Padmini era! Let the opposition drive these old automobiles and high priced vegetables. Opposing reforms will not bring populaty BJP and ever unsatisfied Mamtha di!

    DisAgree [8] Agree [21] Reply Report Abuse

  • Blaan Mendonca, USA

    Sun, Sep 30 2012

    FDI will help India to create more jobs and will improve Indian economy. Because of the Foreign companies Indians are enjoying the luxury of foreign Cars, laptop, Technology and big paychecks.

    DisAgree [11] Agree [29] Reply Report Abuse


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