IT has become clear now that most of the states in the country are against the 51 per cent FDI in retail. When the proposal was first mooted by the UPA government, only Delhi, Manipur, Daman and Diu and Dadra and Nagar Haveli had okayed it. Later on, all the Congress-ruled states had no go but to support the UPA sponsored proposal.
A large number of opposition-ruled states and also states with regional governments are totally against the proposal. And Mamata Banerjee’s Trinamul Congress party which forced the Prime Minister to put the proposal on hold does not appear to have changed its stand. Mamata is still strongly against it. The Prime Minister cannot also ignore the fact that the states ruled by his party are also not in favour of the move.
The fact is there is a general opinion in the country that the FDI in retail world destroy small Indian industry and business. There is definitely some basis for such an opinion. Small units in the country cannot compete with giant foreign companies with globally reputed brand names.
The Prime Minister and the core leaders of the Congress at the Centre appear to be in favour of FDI in retail. What the UPA should do is to take into consideration doubts, suspicions and reservations on the part of states and not go ahead with the proposal if they do not want it.