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LATEST NEWS UPDATES | Indian PM Manmohan Singh defends retail reform

Indian PM Manmohan Singh defends retail reform

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published Published on Nov 30, 2011   modified Modified on Nov 30, 2011
-BBC
 
India's PM Manmohan Singh has defended the decision to open up the retail market to global supermarket chains, saying it will be good for both "farmers and the common man".

Mr Singh was reacting to opposition demands to reverse the decision to allow 51% foreign ownership of multi-brand retail stores.

Opposition politicians say the move will damage India's small retailers.

Parliament has been in uproar and was forced to adjourn again on Wednesday.

'Better prices'

In his first public statement on the controversial issue, Mr Singh virtually ruled out the possibility that his Congress-led government would roll back the proposal.

"We have not taken this decision in any haste but after a lot of consideration. It is our firm conviction that the decision will benefit our country," Mr Singh said at a meeting of the youth wing of the Congress party in Delhi.

"We believe that it will bring modern technology to the country, improve rural infrastructure, reduce wastage of agricultural produce and enable our farmers to get better prices for their crops."

Mr Singh said his government policies were aimed at cutting damagingly high inflation rates.

He also said experience in other nations had shown that "both big and small retailers can easily co-exist in a big country like ours".

He said the government would not be forcing any states to follow the policy.

"State governments that are not convinced of its usefulness have the means to prevent foreign participation in retail businesses in their states," he said.

Opposition politicians say they will not allow parliament to function until the government rescinds the decision.

On Wednesday, opposition members again demanded an adjournment motion to discuss the retail issue and refused to recognise the chair, sparking an adjournment till noon and then for the whole day.

Parliament has barely achieved any legislative work since its winter session opened on 22 November.

The government insists its retail reform will create tens of millions of jobs.

Allowing 51% foreign direct investment (FDI) in multi-brand retail stores will open up opportunities for groups such as Tesco and Wal-Mart to open stores in India.

Such operators can currently only sell wholesale in India and not directly to customers.


BBC, 30 November, 2011, http://www.bbc.co.uk/news/world-asia-india-15956449


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