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LATEST NEWS UPDATES | BJP, Left oppose FDI in retail; UPA also divided

BJP, Left oppose FDI in retail; UPA also divided

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published Published on Nov 24, 2011   modified Modified on Nov 24, 2011

-CNN-IBN

As the Cabinet meets to decide on allowing Foreign Direct Investment (FDI) in the multi-brand retail, it remains to be seen whether the Prime Minister will bite the bullet. The Bharatiya Janata Party (BJP), the Left, UPA ally Trinamool Congress along with some Cabinet ministers Veerappa Moily and Mukul Wasnik have opposed it.

While the BJP feels that FDI will lead to unemployment, the Left has said that it may lead to price rise.

BJP leader Prakash Javadekar said, "Many people will get unemployed due to FDI. We cannot allow this to happen. We will go through the bill and finally decide on the issue."

CPI leader Gurudas Dasgupta said, "It will lead to the displacement of crores of small retailers in the market. FDI inductions will also increase the price rise in retail goods."

West Bengal Chief Minister and Trinamool chief Mamta Banerjee has also said that she opposed the government's decision to allow FDI in multi-brand retail. "We don't support this, I don't support, even pension scheme also," she said in an interview with CNN-IBN.

"I have some reservations, we can express our views, we will express our views when the details will come to us," Mamata added. Commerce Minister Anand Sharma will meet Mamata Banerjee later on Thursday to convince her.

CPI(M) leader Basudeb Acharia has called the FDI 'dangerous' for the country and said that they will oppose it both inside and outside Parliament.

But the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia had told CNN-IBN on Saturday that consensus was being built on FDI.

A decision in favour of the FDI will allow global mega chains like Walmart and Tesco to open shop in India.

Sources say the government will include safeguards to minimise the fears of small traders. The Cabinet is likely to decide on a panel report that looked into FDI feasibility last year.

It is also being reported that the Cabinet is likely to approve 51 per cent Foreign Direct Investment in multi-brand retailing.

Sources have claimed that the government has also proposed to increase the FDI ceiling to 100 per cent from the present 51 per cent in single-brand retail.

The government, it is being claimed, will address the concerns by other political parties on matters like agricultural products still remaining with the government. The Cabinet will also talk about setting up retail branding outlets only in those cities which have a population of over 10 lakh as per the census.
They will also address concerns about textiles, electronics and a final call will be taken by the government on these.


CNN-IBN, 24 November, 2011, http://ibnlive.in.com/news/bjp-left-oppose-fdi-in-retail-upa-also-divided/205414-37-64.html


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