Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Delhi re-tests FDI waters

Delhi re-tests FDI waters

Share this article Share this article
published Published on Jun 2, 2012   modified Modified on Jun 2, 2012

-The Telegraph

The Centre has renewed efforts to forge a consensus on allowing foreign direct investment in multi-brand retail by writing to all chief ministers, seeking to drive home the urgency against the backdrop of grim economic data.

“Letters have been written to all chief ministers to build consensus to open up the multi-brand retail sector to FDI,” a commerce ministry official said.

The statement came a day after the country posted its slowest growth in nine years in the last quarter of 2011-12 (5.3 per cent) and within weeks of US secretary of state Hillary Clinton’s visit during which she is believed to have pushed for opening up of retail.

The concern deepened today as it emerged that exports grew by a meagre 3.2 per cent year-on-year to $24.4 billion in April 2012, prompting a worried government to signal incentives for labour-intensive sectors like textiles in the next few days.

The government’s move to restart the initiative is being seen as an attempt to send a positive message to global investors and restore confidence in the economy, although several chief ministers, including Mamata Banerjee, who have opposed the move have not signalled any change of stand in public.

Tomorrow, Mamata is expected to have one-to-one talks with the Prime Minister, who is scheduled to be in Calcutta. Mamata’s stand on retail will hinge on the Centre’s response to her appeal for financial relief for debt-ridden Bengal.

With yesterday’s GDP figures spreading alarm and many blaming a policy paralysis, the government appears keen to use the moment to try and persuade sceptical states to drop their opposition.

One formula being talked about is reaffirming unequivocally each state’s existing right to deny licences to carry out transactions if a particular state is opposed to FDI in retail. For instance, Bengal can block FDI in its state while another state can give permission if it desires so.

The Union cabinet last year allowed 51 per cent FDI in the segment with conditions but had to suspend the notification following opposition from Mamata who felt that farmers and small shops would be affected.

The Centre is keen to notify the clearance for FDI in multi-brand retail soon after the presidential election in July. Commerce minister Anand Sharma is expected to hold talks with chief ministers and other political leaders in the coming weeks.

Sources said a Congress Working Committee meeting on Monday is expected to pledge support to the government on economic reforms.

Sharma told reporters that the cabinet had already cleared the policy, but the notification had been paused because of objections from some states. “We want to convince the state governments as they have a larger role to play in the success of the policy,” he said.

The state governments have a key role to play. Global retailers can set up shop only if approvals are granted under local laws.

US officials had said Clinton had discussed the issue with Mamata when the secretary of state called on her but the chief minister had said the topic was not broached.

In order to bring around opponents of FDI, the Union cabinet had proposed that multi-brand retailers would be allowed to open shop only in cities with a population of a million and above. According to Census 2011, only 53 of 8,000 cities meet this criterion and political opposition cuts the number to almost half.

The Telegraph, 2 June, 2012, http://www.telegraphindia.com/1120602/jsp/frontpage/story_15561341.jsp#.T8nA21JXOkw


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close