FDI on hold, Parliament deadlock ends

Wednesday, 07 December 2011
The logjam in Parliament over the Union Cabinet’s decision to allow 51 per cent foreign direct investment in multi-brand retail ended this morning after an all-party meeting. The government agreed to suspend the move till a consensus is reached on the issue. Speaking in the Lok Sabha on the decision, Union Finance Minister Pranab Mukherjee said that the consensus would be reached through consultations. “Decision on FDI in retail has been suspended till consensus is reached through consultations with stakeholders," he said. The stakeholders include political parties and states, he said. The opposition parties including some ruling party allies had strongly raised voices against the Cabinet decision to allow FDI in Indian retail, by demanding a complete roll-back of the policy. But as of now, government has decided to put it on hold, since their efforts to reach out to the opposing parties failed to reach a conclusive end on the matter.

It may be noted that the government had decided on November 25 to allow 51 per cent foreign ownership of multi-brand retail stores and 100 per cent in single brand outlets. Now the political leaders have agreed to normal functioning of the Parliament. Today is the first day when Parliament is expected to function normally since the winter session began on November 22.