PM meets TMC-DMK over FDI

In its bid to save itself from losing out on votes for the adjournment motion, Manmohan Singh tried to cajole Trinamool Congress and the DMK to support its decision to 51% FDI in multi brand retail and 100% FDI in single brand retail in a closed quarters meeting in capital New Delhi.

The meeting with the two parties comes as a result of the voiced disapproval from both the parties on participation of the FDI in the retail sector. The Parliament sessions, too have been unproductive for the past five days following the vociferous slogans from several parties against the decision. The meeting with the top brass leaders of TNC and DMK was held to convince the allied parties to abstain from voting, if it did not wish to support it. If the Congress has its way then, there is a good chance that it will win the motion.

 The Government, having worked out its calculations, has dared the opposition to go on a no-confidence motion to show its confidence in winning the votes.The main reason behind the opposition’s condemnation is the lack of jobs that foreign players might create. It argues that a major chunk of the small retailers will get displaced when the big guns roll into the retail market. However, the government is of the strong opinion that the entry to foreign investment, will in return, actually facilitate the increase of jobs. It also cited the mandatory sourcing of minimum 30% from the micro industries in contention. Thailand and China’s approval to 100% FDI in retail sector has also resulted in a lot of benefits to the present agro-processing industries.

With very few doubts and clear benefits, the FDI intervention seems to be a good bet to go ahead. But, as always, every good decision in India has to face several barriers. The dirty political game always gets in way of few good decisions that every government, comes up with and the incumbent scenario needs no more thought to be proved one.