Thu17052012

Back Nation Retail FDI was ‘anti-national' for Congress in 2002

Retail FDI was ‘anti-national' for Congress in 2002

If there have been attempts to turn the tables on the NDA for opposing the FDI in retail trade now despite having itself pitched for it earlier, the Congress too has had its own share of contradictions over the issue in the past.

Lok Sabha debates show that, in 2002, then Congress Chief Whip Priyaranjan Dasmunshi had vehemently opposed the FDI move of the NDA regime and termed it as “anti-national”.

Initiating the debate on December 16, 2002 in Lok Sabha on a Special Mention on FDI in Retail Sector, Dasmunshi said the move would “destroy the entire prospect of the retail trade in the country.” The Congress leader raised the issue after the media reported the then NDA Government’s plans.

“Several Chambers of Commerce, several retail trade groups from Maharashtra, Kolkata and many other parts met our party (leaders) and many MPs of this House. We are sorry to say that still the clarification has not come out in spite of the fact that the Tenth Plan document has been endorsed by the Prime Minister. May be the Prime Minister was not sufficiently conveyed as to what is going on inside.

"Therefore, I would like to draw the attention of the Government, through you as it is alleged, that the multinational retailers through the bureaucratic circles are continuously putting pressure on the Government to take an anti-national decision on allowing foreign direct investment in the retail trade. This will, perharps, destroy the entire prospect of the retail trade in the country," said Dasmunshi.

In his speech Dasmunshi sought clarification after media reported on government's decision to allot FDI in retrial sector and Planning Commission's objections on the move.

"In the month of June, the Task Force of the Planning Commission on Employment headed Dr SP Gupta, categorically advised not to allow FDI into retail trade on account of its adverse consequences on employment.

“Therefore, I strongly feel that if at this stage the Government can clearly make its position, these retail trade groups of India can at least be assured that their trade and activities shall not be further interfered by foreign direct investment as this will not only liquidate employment but also it will adversely destroy or affect the entire prospect of these groups…," continued the Congress Chief Whip.

CPI(M) member Hannan Mollah had also associated with Dasmunshi in describing the plight of Indian traders if the FDI was allowed.

Responding to Dasmunshi, then Commerce Minister Arun Shourie said that he was not aware of any such move by the government. He told Dasmunshi, if there was any such proposal in the Tenth Plan document, the issue will be discussed in the National Development Council, where Congress Chief Ministers would get a chance to discuss.

As things stand, senior BJP leader Arun Jaitley has clarified that though the BJP had never favoured FDI in retail sector, the NDA's vision document had proposed it in 2004.

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