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LATEST NEWS UPDATES | FDI in multi-brand retail still on govt’s mind: FM

FDI in multi-brand retail still on govt’s mind: FM

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

-The Times of India

 

Finance minister Pranab Mukherjee said on Friday that opening up of the multi-brand retail sector to foreign investment was still on the "mind of the government" and it would be pursued once consensus emerged among political parties and other stakeholders.

Mukherjee blamed lack of consensus among political parties for the government's inability to implement the reform measure but said it did not reflect the lack of intention or commitment on the government's part.

"The people have given us a mandate by giving us 208 seats in a House of 543, but that is not more than half the seats that is needed for an absolute mandate. In a multi-party political system, consensus winning takes time. Therefore, it is taking longer than expected to collect together a verdict," Mukherjee said at a function organized by the PHD Chamber of Commerce and Industry.

The UPA government had to put on hold its decision to open up the multi-brand retail sector to global retailers such as Walmart and Carrefour in the face of stiff opposition from its allies and the opposition.

"We shall pass the new generation of reforms that are badly needed in the country as it is very much on the mind of the government to gain consensus over it. We are working hard to gain consensus with political parties and as soon as a consensus is reached, we will work on it," he said.

But Mukherjee slammed industry representatives for their negative comments about the government's handling of economic policies. "The industry do not need to merely reiterate the issues at hand as that is not going to solve the problems; India needs the combined efforts of the entrepreneurs, the industries, the management and the farmers to come out of this situation," he said.

Prime minister Manmohan Singh had said on Thursday that he was disappointed by the negative comments from India Inc. Industry has strongly criticized the government for its failure to push ahead with economic reforms and the policy paralysis in the aftermath of corruption scandals which emerged since last year.

Mukherjee said India had done well in maintaining the growth momentum despite the uncertainties on the global economic front. "Globally for policy makers this is one of the most challenging phases," the finance minister said.

He urged the captains of industry to cooperate with policymakers to overcome the challenging situation. The economy is expected to slow to 7.5% in the current financial year from the previously estimated 9% due to the impact of the global economic slowdown and domestic factors such as stubborn inflation and high interest rates.

The Times of India, 24 December, 2011, http://timesofindia.indiatimes.com/business/india-business/FDI-in-multi-brand-retail-still-on-govts-mind-FM/articleshow/11224948.cms


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