Indian govt. hasn’t shelved decision on FDI in retail: FM says
Indian government couldn't implement its decision on allowing foreign direct investment (FDI) in retail, but it hasn't shelved the controversial decision, Finance Minister Pranab Mukherjee said.
Speaking at business lobby PHD Chamber's annual general meeting, Mr. Mukherjee said that the government was making efforts to build consensus on allowing FDI in retail, as "limited mandate" in the previous Lok Sabha election was not allowing it to advance on the decision on its own.
Confirming the government's firm stance on the decision, Mr. Mukherjee said, "We announced FDI in retail policy but couldn't implement it. The people gave us limited mandate, with which we cannot carry out sweeping reforms. But we haven't shelved this policy."
The government wants to allow 51 per cent foreign direct investment in multi-brand retail, but its key allies like DMK and TMC didn't allow it move ahead with its plans.
The largest opposition party, the BJP, is also opposing the decision because it believes that allowing foreign direct investment in retail would throw million out of their jobs.
Mr. Mukherjee also said that the government was attempting to build consensus on other economic legislations such as Pension Fund Regulatory Development Authority (PFRDA) to reform pension schemes.
