Cong core panel backs govt move

The Congress core committee on Friday backed the government’s decision to allow 51% foreign direct investment (FDI) in multi-brand retail and 100% FDI in single brand retail. Aurangzeb Naqshbandi reports.

The Congress core committee on Friday backed the government’s decision to allow 51% foreign direct investment (FDI) in multi-brand retail and 100% FDI in single brand retail.

HT Image

The core group meeting, chaired by Congress president Sonia Gandhi and attended by Prime Minister Manmohan Singh, held a threadbare discussion on the issue.

Sources said party leaders had been directed to defend the government’s policy decision both in and outside Parliament.

While some Congress ministers had opposed the move in the cabinet meet on Thursday, many senior leaders, including party general secretary Digvijaya Singh, supported it.

“Fully support 51% FDI in retail. Good for consumer as it would eliminate middlemen. It won’t affect the neighbourhood store and rural market,” Singh tweeted.

A lot has changed since 2007 (UPA-I regime) when Gandhi wrote a letter to the PM, asking the government to put safeguards in place to protect the interests of aam admi before allowing FDI in the retail sector. The party nod came after the government assured them that complete transparency will be followed on the FDI issue.