Thursday, July 5, 2012

Congress Governed States likely to move with FDI in retail


The UPA2 is all set to move with FDI in multi brand retailing in congress led states. This seems to be a welcome move for a government which is suffering from an image of policy paralysis. Since FDI in retail does not require any parliamentary approval and is more state subject thus it seems to be the correct move from the government. But the million dollar question is it politically correct? Commerce Minister Anand Sharma has been making it very clear, as have other members of this government, that they are keen to push forward with FDI in multi-brand retail.
With West Bengal Chief Minister Mamta Banerjee giving a brain storming session to UPA 2 it is clearly evident that she acts as a NATURAL ally to NDA. Especially after a recent setback on presidential election candidature won’t this step of UPA provoke her? Who single handedly fought the battle against FDI in retail that led to rollback of FDI.
With monsoon session of parliament knocking on the door this could be a big issue. Especially when the Indo-Bangladesh constitution amendment bill has to be table by the UPA and for which Mamta Banerjee has already shown its distrust. Passing of constitutional amendment bill requires approval of 2/3 of the members. UPA -2 has already lost the last constitutional amendment poll in relation to giving lokpal a constitutional status and if this time also the result is same it could be a big trouble for the government. 

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