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A day after winning 67 seats in the Delhi Assembly poll, the AAP has indicated that it could dilute its position on foreign direct investment (FDI) in retail.
“We need to keep our doors open and then see how our own entrepreneur flourishes amidst competition,” a senior party person told BusinessLine , indicating a change in the party’s stand on FDI.
Even in its manifesto for Delhi election 2015, it had said: “FDI in retail will lead to the loss of millions of jobs in the small business sector. AAP is opposed to FDI in retail in Delhi.”
Asked about the contradiction between the party manifesto and the present thinking, the AAP leader said that earlier a ‘Left’ ideology used to direct the thinking of the AAP. Now, the situation has changed with more and more youth leaders replacing the old brigade and this will have some impact on policy.
Trading hubThe party manifesto also said the economic policy of the new government will be different from the 2013 government, with a clear focus to make Delhi a major industrial and trading hub.
AAP convener Arvind Kejriwal is scheduled to take oath as Chief Minister for the second time this Saturday.
The previous UPA government allowed 100 per cent FDI in single brand retail trade and 51 per cent in multi-brand retail. On multi-brand retail, the decision was left to State governments/Union Territories. Eleven States and UTs including Delhi, Rajasthan, Maharashtra, Haryana and Karnataka beside others which were mainly Congress-ruled were notified by the Central government.
Senior AAP leader Ashutosh said the policy of the new AAP government will give importance to market forces, but with a rider.
“Market economy is the best way for development but we will ensure that we strike a balance between market economy and welfare state,” he said, highlighting the need to provide better amenities to 40 per cent of the Delhi population living in slums.
He also said that the new government will work towards simplifying and lowering VAT, as it is very high in comparison to Haryana. This has resulted in the migration of industrial and trading activities to the neighbouring State. “Now, there is time to rectify that so that Delhi can become a major industrial and trading hub,” he said.
The manifesto had promised that in five years, Delhi will attempt to have the lowest VAT regime. Ashutosh also said that out of 27 industrial hubs, 20 are defunct and the new government will try to make them active.
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