Soon after the declaration of BJP’s stand on FDI, the sensex tanks 100 points leaving the corporate sector thwarted. However, the stock market later got stable but this situation has highlighted the market worries regarding the BJP’s FDI policy.
Expressing his concern over the FDI issue, FICCI president Sidharth Birla said, “I welcome FDI as it will help in generating employment and developing assets, but the clause which is keeping multi-brand retail out of the loop saddens me.”
FICCI further hopes that may be with time the BJP will change its take on the issue.
When senior leaders of the party were questioned about the retail issue, none of them came clear with the fact that the party will strike off the current retail policy on the rolls.
Putting across his views, president of PHD chamber Sharad Jaipiruya said, “When the BJP is welcoming FDI in every sector, opposing the same policy in the field of Multi-retail Branding makes no sense. This decision of the party will adversely affect the image of the country; as on the decisions made by the UPA government many foreign companies are ready to invest in our country.”
This decision will affect the foreign investors and might bring back the situation which occurred at the time when taxes were laid on the Vodaphone users.
It is pertinent to note that BJP has always opposed the idea of involvement of foreign companies in the Multi-brand retail sector. And not even single BJP-ruled state has applied the Multi-brand retail policy.
In Rajasthan after the formation of BJP government, the party before accepting the FDI and related policies overruled the then existing Congress-made policies in the state.
Political hindrance of such kind is one reason because of which foreign companies hesitate to invest in India.
Currently Tata sumo with TESCO is planning to open a multi-brand retail change in India. Where the Bharti group is willing to join hands with Carrefour.
According to sources these companies will reveal their strategies after the elections.