Foreign investment will be allowed only in areas that create jobs and assets and will be disallowed in retail trade, the Bharatiya Janata Party (BJP) said Monday, while promising better infrastructure and stability in prices and taxation.
Devoting considerable attention to physical infrastructure, agriculture and industry, the party presented its manifesto for the Lok Sabha elections, promising an environment that creates a modern, caring industry and is conducive to doing business in India.
"Barring the multi-brand retail sector, foreign direct investment will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialised expertise," the party manifesto said.
"BJP is committed to protecting the interest of small and medium retailers, SMEs and those employed by them," it said, in a reversal of a decision by the United Progressive Alliance (UPA) government to allow up to 51 percent foreign equity in multi-brand retail to pave the way for the entry of supermarket brands like Wal-Mart and Tesco.
Industry bodies reacted cautiously to BJP's manifesto.
The Associated Chambers of Commerce and Industry (Assocham) said it will impress upon the BJP to reconsider its stand on multi-brand retail, as this sector had the potential for a multiplier effect on the Indian economy without disturbing neighbourhood stores.
"We feel disappointment on the stand on FDI in Multi-Brand Retail, we hold out hope for a possible review in the future," said Ficci president Sidharth Birla, while welcoming an investment-friendly environment and linking of foreign investment to jobs.
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In its manifesto, the BJP said it will also make the Foreign Investment Promotion Board (FIPB) more efficient and investor-friendly, and promised to make the tax regime simple. It accused the present government of unleashing "tax terrorism" and "uncertainty."
"BJP realises the importance of having a tax policy roadmap, so that people are aware of the future and plan accordingly," it said. On proposed goods and services tax (GST), the party said it would bring on board all state governments and address their concerns.
The BJP said it will also revive "Brand India" with the help of five Ts -- Tradition, Talent, Tourism, Trade and Technology. The party said it will also re-visit the policy framework for investments -- both foreign and domestic -- to make them more conducive.
At the same time, it promised to attack the generation of black money at its roots.
"By minimizing the scope for corruption, we will ensure minimization of the generation of black money. BJP is committed to initiate the process of tracking down and bringing back black money stashed in foreign banks and offshore accounts."
For keeping inflation in check, it promised strict measures and special courts to stop hoarding and black marketing, as also a price stabilisation fund, better procurement by state agencies and a single national agriculture Market.
It said farmers will get at least 50 percent profits over their costs, besides a policy that protects their interests while land is acquired for industry. It said a national land use authority will be created for this to work with state agencies.
It also promised what it called a next-generation infrastructure with all-weather roads for every village, freight and industrial corridors, gas grid, optic fiber network and a rail network that accommodates bullet trains and agri-tourism with safety and comfort.
Highlights of promises made:
- End policy paralysis
- Curb corruption
- Improve manufacturing output
- Undertake banking reforms
- Build 'Brand India'
- Welcome foreign investment in job-creating areas
- No foreign equity in multi-brand retail
- Check inflation with single national agriculture market
- Create jobs with labour-intensive manufacturing
- Give boost to agriculture
- Bring back black money
- Create 100 new cities
- Frame a responsible national energy policy