'FDI in multi-brand retail after political consensus'
25 July 2012 7:04 AM IST
The government will not take a final decision on allowing of foreign direct investment (FDI) in multi-brand retail sector until a political consensus is reached, minister of state for planning Ashwani Kumar said on Tuesday.
‘Any final decision with respect of FDI to multi-brand retail will have to await broad political consensus. We will not proceed on contentious issues until political consensus has been arrived,’ the minister said.
He was replying to a query on when the centre is likely to launch reforms, including FDI into multi-brand retail with Presidential elections now over.
Commerce and industry minister Anand Sharma on 19 July had said that there was a ‘strong consensus on the decision to allow FDI in multi-brand retail even as several chief ministers were yet to respond on the issue.
Stating that Prime Minister Manmohan Singh and the UPA government are committed to economic reforms, Kumar stressed on taking policy initiatives and reviewing controversial retrospective taxation system and General Anti Avoidance Rules (GAAR) to encourage foreign investments into the country.
‘In order to inspire investment, we need to take some policy initiatives, need to rationalise subsidies, contain fiscal deficit...we need to move away from retrospective taxation as per the present perception and need to review GAAR,’ he said.
Kumar said investments from private sector in infrastructure is the key to put the economy on a high growth track. There is a need to spend $1 trillion in infrastructure in next five year plan, he added.
On GDP growth, he said under the changed global economic circumstances, the growth between 8.2 per cent and 8.5 per cent in 12th Five year plan would be a good effort.
‘We targeted 9 to 9.5 per cent GDP growth (in 12th five year plan)..,I think in changed global economic circumstances ...8.2-8.5 per cent will be a great job done,’ he said.
Kumar rejected the suggestion that the country is facing drought but said some states are seeing deficient rain.
‘22 per cent monsoon has been deficient so far. (However) there is no drought situation in the whole country... some states like Karnataka and Andhra Pradesh where situation is worrisome due to less rain...contingency plans are being prepared (to deal with this situation),’ he said.
‘Any final decision with respect of FDI to multi-brand retail will have to await broad political consensus. We will not proceed on contentious issues until political consensus has been arrived,’ the minister said.
He was replying to a query on when the centre is likely to launch reforms, including FDI into multi-brand retail with Presidential elections now over.
Commerce and industry minister Anand Sharma on 19 July had said that there was a ‘strong consensus on the decision to allow FDI in multi-brand retail even as several chief ministers were yet to respond on the issue.
Stating that Prime Minister Manmohan Singh and the UPA government are committed to economic reforms, Kumar stressed on taking policy initiatives and reviewing controversial retrospective taxation system and General Anti Avoidance Rules (GAAR) to encourage foreign investments into the country.
‘In order to inspire investment, we need to take some policy initiatives, need to rationalise subsidies, contain fiscal deficit...we need to move away from retrospective taxation as per the present perception and need to review GAAR,’ he said.
Kumar said investments from private sector in infrastructure is the key to put the economy on a high growth track. There is a need to spend $1 trillion in infrastructure in next five year plan, he added.
On GDP growth, he said under the changed global economic circumstances, the growth between 8.2 per cent and 8.5 per cent in 12th Five year plan would be a good effort.
‘We targeted 9 to 9.5 per cent GDP growth (in 12th five year plan)..,I think in changed global economic circumstances ...8.2-8.5 per cent will be a great job done,’ he said.
Kumar rejected the suggestion that the country is facing drought but said some states are seeing deficient rain.
‘22 per cent monsoon has been deficient so far. (However) there is no drought situation in the whole country... some states like Karnataka and Andhra Pradesh where situation is worrisome due to less rain...contingency plans are being prepared (to deal with this situation),’ he said.
Next Story
