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Parties in India fail to resolve retail row
Source: Agencies |
November 30, 2011, Wednesday
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INDIA'S ruling Congress Party failed yesterday to persuade both its allies and the opposition to support the country's new open-door policy for foreign retailers.
The Cabinet decision last week to let foreign retailers own up to 51 percent of supermarkets and 100 percent of single-brand stores has unleashed a political furor across the country, with parties across the spectrum demanding its immediate revocation.
A meeting of lawmakers from all parties in Parliament to discuss the dispute collapsed yesterday morning, and the national legislature was forced to adjourn for a second day in a row because of the deadlock.
Sitaram Yechury, a legislator from the Communist Party of India (Marxist), called the policy "disastrous" and accused the government of blind-siding its opponents by pushing the new rules without consulting Parliament.
"The demand of the whole opposition is that the decision should be revoked," Murli Manohar Joshi, a leader of the opposition Bharatiya Janata Party, said.
The new regulations don't require parliamentary approval, but to set up shop, foreign retailers such as Wal-Mart and Tesco must get approval from the government of the state where stores will be located.
As the argument raged, Ikea Chief Executive Mikael Ohlsson visited India to evaluate the new rules. He could make an announcement regarding Ikea's investment plans as early as today, Ikea spokeswoman Josefin Thorell said.
Ikea has long wanted to come to India, but declined to do so under the old investment rules, which required it to work with an Indian partner.
The Cabinet decision last week to let foreign retailers own up to 51 percent of supermarkets and 100 percent of single-brand stores has unleashed a political furor across the country, with parties across the spectrum demanding its immediate revocation.
A meeting of lawmakers from all parties in Parliament to discuss the dispute collapsed yesterday morning, and the national legislature was forced to adjourn for a second day in a row because of the deadlock.
Sitaram Yechury, a legislator from the Communist Party of India (Marxist), called the policy "disastrous" and accused the government of blind-siding its opponents by pushing the new rules without consulting Parliament.
"The demand of the whole opposition is that the decision should be revoked," Murli Manohar Joshi, a leader of the opposition Bharatiya Janata Party, said.
The new regulations don't require parliamentary approval, but to set up shop, foreign retailers such as Wal-Mart and Tesco must get approval from the government of the state where stores will be located.
As the argument raged, Ikea Chief Executive Mikael Ohlsson visited India to evaluate the new rules. He could make an announcement regarding Ikea's investment plans as early as today, Ikea spokeswoman Josefin Thorell said.
Ikea has long wanted to come to India, but declined to do so under the old investment rules, which required it to work with an Indian partner.
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