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FDI in retail, other reforms may get further delayed

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 4:33 AM IST

The government would find it difficult to implement the decision to allow foreign chains to open stores in the country as JD-U President Sharad Yadav joined hands with Left and the UPA-supporting Samajwadi Party (SP) in opposing foreign direct investment in retail.

Industry and markets were expecting Prime Minister Manmohan Singh to push reforms after the Presidential polls.

The stock market read the political signals and shares of the home-grown companies engaged in organised retail tumbled about 8 per cent today on BSE.

Commerce and Industry Minister Anand Sharma, who has been trying to forge a consensus on the issue, refused to comment.

"I have not seen any letter and I will not comment," he said when asked about communication to the Prime Minister by SP chief Mulayam Singh Yadav, CPI(M) General Secretary Prakash Karat, CPI General Secretary S Sudhakar Reddy, Forward Bloc's Debabrata Biswas, JD-S' Danish Ali and RSP's Abani Roy.

They said FDI in sector would hurt the interest of about 40 million people employed in the retail business.

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The JD-U President said he would reach out to other parties, including UPA allies, to put up united fight against this "biggest assault" on the Indian economy.

They would also raise the issue in the coming session of Parliament.

"We appeal to all parties including the UPA allies to oppose this anti-people measure," Yadav said.

The government had to put the November 2011 Cabinet decision to allow 51 per cent FDI in multi-brand retail on the back-burner.

The other difficult reforms include raising FDI cap in insurance and allowing foreign airlines to invest in domestic carriers.

  

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First Published: Jul 23 2012 | 8:36 PM IST

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