The Government has stepped up efforts to win consensus for implementing majority foreign direct investment (FDI) in multi-brand retail.
The Union Commerce and Industry Minister, Mr Anand Sharma, without using the term FDI, said the time had come for “a bipartisan approach so that major reforms can go through and for the policy initiative which should turn the economy around in a very big way…. I am appealing to all.”
He was speaking to select media after announcing the supplement to the Foreign Trade Policy in the Capital on Tuesday.
The Cabinet, on November 25 last year, decided to open up multi-brand retail for 51 per cent FDI. But with strong opposition from the Bhartiya Janata Party (BJP) and UPA's ally Trinamool Congress, the Government put the decision in abeyance. This development disappointed foreign investors.
Mr Sharma clarified that now there was no need to approach the Cabinet again for the implementation of this policy. “Once we are convinced that there is required consensus, we can do it. There is very strong consensus. We are talking, we will try to take everyone on board,” he added.
He also hinted that the Government might go ahead if it feels there is broad enough support for the move. “You do not seek unanimity in decision making because unanimity will always elude you. It has not happened in any country and in any democracy, and it cannot happen here. So you have to look where there is the national interest,” he clarified.
RATE CUT
Mr Sharma also appealed to the Reserve Bank of India for a rate cut. The RBI is scheduled to review its monetary policy on June 18.
“I would urge them (RBI) to look at the present depressed investment climate and the disturbing fall in manufacturing, core sector and IIP (Index of Industrial Production) numbers.”
Asked about the over 20 per cent depreciation in rupee against the US dollar, Mr Sharma said, the Commerce Ministry is in regular touch with the Finance Ministry and the RBI.
“We are constantly talking to Finance Ministry and the RBI. We are for a stable rupee...we hope the current situation won't last for long,” he said.