New Delhi: India Inc has asked the Central government to evolve a consensus on the issue of foreign direct investment (FDI) in multi-brand retail with the political parties opposing the proposal.

After an uproar in the Parliament and strong opposition, mainly from its key allies TMC and DMK, the government had put on hold the decision to allow 51 percent FDI in the multi-brand retail sector.

Expressing concern on the decline in industrial production and capital investment during the second meeting of the government with the Industry taskforce, India Inc said the introduction of FDI in retail will be beneficial for all.

The issue came up for discussion during a meeting between Commerce and Industry Minister Anand Sharma along with the secretaries from the Ministry of Finance and business leaders of CII and FICCI.

After the meeting, Sunil Munjal of Hero Group said, “The government must work in collaboration with the protesting political parties to clear the deadlock in the introduction of FDI in Indian retail industry”.

According to the Commerce and Industry Minister Anand Sharma, the industrial taskforce has also reviewed the power projects and has asked the government to deal with the hurdles posed in implementation of these projects.
He said the efforts are being made to increase the pace of the projects.
Sharma said, Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee are also concerned on the continuous depreciation in the rupee and are in contact with the Reserve Bank in this regard.

It is to be noted, this was the second meeting to boost the economy. The government had asked the industrial houses to come up with their recommendations during the previous meeting on September 27.

Sharma said, the industries and the government need to be in regular dialogue which must be maintained in future.

Sharma said, “The economic slowdown is an unfortunate situation and the government is trying to deal with the situation”.