FDI in Retail Continues to Haunt UPA Government

FDI in Retail Continues to Haunt UPA Government

While senior Congress leaders tried to present positive sides of the allowing FDI in Retail Sector, the opposition parties were in no mood to listen. BJP leaders have sent clear message that they won’t allow any activity to proceed in the parliament till the time UPA backtracks on the bill issue.

Pranab Mukherjee held meetings with Congress MPs on FDI policy and Prime Minister Manmohan Singh also tried to paint a positive picture of allowing foreign companies in retail sector in India.

As per latest reports, Sonia Gandhi has also stepped in to find a solution to the problem. Left Parties have also condemned the government’s decision.

Opposition parties are asking for a rollback of the decision citing farmer’s security and retailer’s business as reasons for the protest.

Hindustan Times has published results of a survey which says that 2/3rd of Indians are in favor of allowing retail FDI. It will bring in more competition and will offer much better pricing for farmers. The decision will also help reduce the gap of price a farmer gets and the price a consumer pays at final point of sale.

Retail business was also expecting big hit from organized retail shops coming up across the country. However, after two years of organized retail operations in India, the negative impact on small retail shops was minimal.

Some big chains have also setup wholesale shops in various cities to help retailers get commodities at lower price. Bharti Wal-Mart and French retail giant Carrefour have setup wholesale shops and their business is growing as more retailers accept the new model of sourcing commodities.

The parliament was adjourned yesterday and with strong message coming from opposition, one can expect the issue to drag further.

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