Wednesday, December 5, 2012

FDI in multi-brand retail win in Lok Sabha

FDI in multi-brand retail today got the approval of the Lok Sabha as the Opposition motion seeking immediate withdrawal of the decision was rejected convincingly as BSP and SP walked out.> 218 voted in favour of the Opposition motion, while 253 voted against it in the House where 471 members participated in the voting. The total strength of the House is 545. House also rejected the motion seeking amendment to the rules notified by the Reserve Bank under Foreign Exchange Management Act (FEMA) to enable FDI in multi-brand retail.While 254 voted in favour of the government, 224 were against.
Members of SP and BSP, with respective strength of 22 and 21, did not participate in the voting as they walked out alleging that interests of farmers and small retailers had been ignored.The victory of the government after two days of heated debate was immediately hailed by Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi.
“FDI policy that we have put in place has the approval of this House (Lok Sabha),” said Singh, who is a member of Rajya Sabha but was present during the voting in the Lower House.This was after a gap of many years that an executive decision of the government was put to vote in Parliament.Earlier, replying to the discussion, Commerce Minister Anand Sharma dismissed the Opposition charge that the move would hurt small traders and farmers and that the government has rushed the decision.
He said the decision was not taken overnight and deliberations were held with chief ministers and other stake holders like association of farmers, consumer organisations and representatives of the food processing industry.
Leader of the Opposition Sushma Swaraj, who had moved the motion, maintained that majority of the House was against FDI in retail which was reflected in speeches of leaders of different political parties.Sushma Swaraj appealed to the Prime minister to reconsider the decision as only four out of 18 parties spoke in favour of the decision. She said, the motion could be defeated only because, the parties who took part in the Bharat bandh against FDI, and also spoke against it in the house chose to abstain by staging a walk out. She said, the debate was not on matters relating to communal or secular issues, but affecting poor people.
Earlier, participating in the debate, Mr. Gurudas Dasgupta of CPI said FDI in multi-brand retail will create monopolies that will manipulate local markets and dictate prices. He warned the Government that overdependence on foreign funds will not be in India’s interest.
Akali Dal leader Harsimrat Kaur Badal said the multi-brand retailers will eventually squeeze out the middlemen from the supply chain. She wanted to know whether the Government has considered where will those thousands of small traders and wholesale retailers rendered unemployed go to find jobs.
Senior BJP leader Murli Manohar Joshi furnished documentary evidence to prove how FDI in Retail will go against the country’s interest

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