Pushed to the wall on the issue of allowing foreign direct investment (FDI) in the multi-brand retail, the government today asserted that the decision was "suspended and not rolled back" and said it will start fresh talks with stakeholders to bring it back on the table.
"I do not think there is a policy paralysis. Sentiment has been low. The government is committed to the reform agenda...There is only a suspension, there is no roll-back of the decision. We will be talking once again [with the stakeholders]," Commerce and Industry Minister Anand Sharma said.
The issue came up for discussion during a meeting between Sharma and business leaders of CII and Ficci.
After a big uproar in Parliament and strong opposition, mainly from its key allies TMC and DMK, the government had put on hold the decision to allow 51% FDI in the multi-brand retail sector.
Sharma said as far as his ministry is concerned the decision was a "well thought-out" one and was taken after intense consultations with all stakeholders, including SMEs, states and farmer associations.
The decision was not taken "abruptly", he said. "Let us remain optimistic that we will be able to ensure that there is a larger support," he said.
About his meeting the industry, he said that they have reviewed the progress of several mega projects in sectors like power. Issues like high cost of credit, depreciation in rupee and declining industrial production also came up discussion.
"Industry feels and the government also accepts that it [mega projects] should be regularly monitored so that the project approvals are put on a fast track," he said.
However, they did no disclose the name of the mega projects.
On reviving industrial growth, he said the government and the industry are in a regular dialogue and are discussing ways to increase the factory output.
