New Delhi:
The government has decided to suspend one of its biggest decisions - Foreign Direct Investment or FDI in retail - till a consensus is reached among political parties. Finance Minister Pranab Mukherjee, who carries the mantle of being the government's main trouble-shooter, explained this to both the BJP and the Left this morning. The government's "holdback" is an attempt to buy peace in Parliament - nearly half the winter session has been squandered with the opposition refusing to get to work till the government cancels its reforms in retail.
Neither the Left nor the BJP, who have struck gold with this opportunity to embarrass the government, have indicated a change in stand. Both parties say their demand continues to be for a "rollback." Mr Mukherjee called the BJP's Sushma Swaraj this morning, and said "FDI is in abeyance till consensus emerges among all affected parties." The same call was then placed to the Left's Sitaram Yechury.
Both he and Ms Swaraj suggested that the government call an all-party meeting to share its plans. That group session has been fixed for Wednesday at 9.30 am, after which Mr Mukherjee will make a statement in Parliament.
"I told Pranab-da it's best if if you tell us your decision at the all-party meeting so that we can understand it. Then there's a chance of the house functioning smoothly," said Ms Swaraj. "But if you don't tell us of your decision here, then it's possible there will be protests in parliament," she warned.
The opposition may claim that it's calling the shots but it's Mamata Banerjee who owns bragging rights for forcing the government to change its mind, a consequence of which is a dent to the Prime Minister's authority. Late last week, Ms Banerjee made it clear that she cannot support the government's decision to allow 51% foreign ownership of multi-brand retail stores because she believes it will jeopardize the livelihoods of farmers and traders by allowing the entry of international super-chains like Wal-Mart and Tesco.(
Read: Pranab told me Centre has decided to put FDI on hold, says Mamata) Subtly, the Congress indicated that it may not feel very differently - an opinion that was no doubt influenced by the fact that key states like Uttar Pradesh vote soon.
Last week, at a public speech, Dr Manmohan Singh defended the reform in retail and indicated it could not be reversed. He, like Mr Mukherjee and Commerce Minister Anand Sharma, stressed that individual states can choose to ignore the union government's policy. (
Read: FDI in retail - PM defends decision, says good for economy) Describing the reforms as "an enabling framework," Mr Sharma told NDTV last week that it was "in deference" to Ms Banerjee that the centre ensured that states were given the right to adopt or reject the new rules on FDI in retail. (
Read full transcript: Commerce Minister Anand Sharma speaks to NDTV on FDI)
Corporate India has urged the opposition not to aim for political petty gains by fighting the government's attempt to emerge from the "policy paralysis" it has been criticized for. Law Minister Salman Khurshid tried to find a brave spin- it's not a setback, he said. If the government is forced to slide from a "holdback" to a "rollback," the Prime Minister will be severely embarrassed.