Saturday, December 3, 2011

FDI put on hold!!

It appears that the Union Cabinet has put the decision of FDI in retail on hold, for now i.e. the MNCs like Wal Mart will have to wait a little longer before being able to set store in this India.

The Government of India which is currently a coalition government is once again on the backfoot. It has once again had to roll back a decision taken by the its biggest coalition member - the Congress Party. This was conveyed to the media by Ms. Mamta Banerjee, the supremo of the Trinamool Congress.

She said
"Pranabda sought our opinion on the issue and we told him that the Trinamool Congress remains firm. He informed me that the cabinet decision on FDI entry in retail will be suspended until and unless a consensus is evolved"
The government has had to face the ire of the people and a very stiff resistance from the opposition parties. Even some of its allies, including the Trinamool Congress, were against it on issue of FDI.

The traders in the country had called for a nation-wide one-day bandh on the 1st of December, a call that had received overwhelming support from traders across the length and breadth of the country.

All-in-all, the end result is that the government has finally given in to the public demand and put FDI in retail on hold.