TIMES NEWS NETWORK [SUNDAY, MARCH 04, 2007 01:02:06 AM]
Call it the poll effect. Congress president Sonia Gandhi asked Prime Minister Manmohan Singh to go slow on opening up of the retail sector any further. In a letter to PM, she wanted the government to make any forward movement on opening up of the sector “only after examining the impact of the decision on livelihood security of those engaged in small-scale operations.”
In her letter, she mentioned that she had received suggestions from many quarters about the desirability to first study the possible impact of transnational supermarkets on livelihood security of those engaged in small-scale operations. “I thought I would convey this to you so that you may consider having the relevant issues properly examined before further decisions are taken,” the letter added.
The missive came at a time when US giant Wal-Mart has tied up with the Bharti group for a retail venture and companies such as Carrefour of France and Tesco of the United Kingdom are also looking closely at the Indian market. The government officials, however, clarified that Wal-Mart’s India venture was very much under the existing legal framework.
Industry watchers termed it a worrying development as the Left and other anti-FDI sections could project the latest missive from Ms Gandhi as a dissent against the government’s policy paradigm.
In fact, Ms Gandhi appears to share the views of those opposing the entry of foreign direct investment (FDI) in retail, particularly the Left. The argument and the tone of the letter to the PM suggest that she’s in agreement with the by-now-familiar concerns raised by the Left. The Left parties have been opposing the UPA’s move on retail FDI from the very beginning. The government, in turn, tried to convince the Left that it would not bring FDI in the retail sector without placing safeguards for the neighbourhood kirana stores.
Commerce and industry minister Kamal Nath refused to elaborate and said, “The PMO sought details of the FDI policy in retail. We have sent our comments.” The commerce ministry further clarified that the existing policy did not allow FDI in retail except in one branded stores.
Congress spokesperson Abhishek Singhvi also refused to elaborate on the safeguards required. He, however, added that it was imperative to see that the supply chain was not monopolised.
