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The Commerce and Industry Minister, Mr Anand Sharma, has said that he will be writing to the Bihar Chief Minister and JD(U) leader Mr Nitish Kumar seeking his support to allow foreign direct investment (FDI) in multi-brand retail trade.
Mr Sharma said the Government has already received written commitment from seven States — Andhra Pradesh, Assam, Delhi, Haryana, Kerala, Maharashtra and Rajasthan (all Congress-ruled States) — backing the move to liberalise multi-brand retail trade, and Punjab was expected to give a similar commitment soon.
The Minister said liberalisation of multi-brand retail trade will be beneficial to farmers as they will be able to get a higher price for their produce, as well as to consumers who will be offered several choices of products at cheaper prices.
He was speaking on Tuesday after conclusion of the 15th Round of negotiations of the India-European Union Free Trade Agreement here.
Mr Sharma said he had already written letters to the Chief Ministers of Odisha, Uttar Pradesh and Punjab – all ruled by non-Congress parties.
Mr Sharma’s move to write to Mr Nitish Kumar assumes significance as Mr Kumar had recently courted controversy by stating that the prime ministerial candidate of the opposition NDA should be someone with secular credentials, in a veiled attack on the Gujarat Chief Minister Mr Narendra Modi’s ‘aspirations’ to be the country’s premier.
This had led to reports that there is a widening rift between the BJP and the JD(U). Incidentally, the BJP had opposed FDI in multi-brand retail.
final clearance
Mr Sharma indicated that the final clearance for the FDI in multi-brand retail may take some more time as the Government is trying to evolve a broad-based consensus on the issue by holding consultations with all the stakeholders including the State Government.
The Government has suspended its move to allow 51 per cent FDI in multi-brand retail owing to objections raised by several political parties including its key ally the Trinamool Congress.
Mr Sharma said the Kerala Government indicated that though some States may not eventually allow FDI in retail, the others which support the move should be allowed in order to not only attract FDI to their State, but also to reduce prices of several products.
The Minister, however, added that the Centre recognises the right of the State governments to voice their opinion against opening up of multi-brand retail trade.
The Centre can create an enabling and facilitating environment to open up the multi-brand retail trade by allowing FDI, but finally it is up to the State Government to take a call on granting trade licences for the companies to open stores.
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