Pranab justifies retail FDI timing

Almost everyone is questioning the timing of the decision to allow FDI in retail, at a time when Parliament is already frozen over other issues.

Almost everyone is questioning the timing of the decision to allow FDI in retail, at a time when Parliament is already frozen over other issues.

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Finance minister Pranab Mukherjee justified it by saying government must use policy tools to address adverse economic situations.

Pointing to the sliding Sensex and the tumbling rupee, Mukherjee told HT: "Except these policy announcements, is there any other way the government can address these issues?"

"The rupee has appreciated by 24 paisa today. I think our policy initiative made an impact," Mukherjee added.

Analysts though said that a stronger euro against the dollar was also a reason for the rupee gaining.

Upset over the opposition's outburst, Mukherjee said, "The cabinet decision is just an enabling provision. Nobody is forcing the states to welcome foreign retail traders. Ultimately, it will be the decision of the state governments."

As the Parliament session is on, Mukherjee maintained that the government is ready to give a detailed answer only before the two Houses. "Everyone has the right to say it should have been done now or later."