UPA has surrendered before global retailers: BJP

BJP today accused UPA government of surrendering before global retailers like Walmart by diluting the norms for FDI in multi-brand retail and promised to do away with such "flip-flop" in economic policy making if voted to power.
BJP spokesperson Meenakshi Lekhi alleged that "specific lobbying" by global retailers had led to the government decision yesterday to ease norms for FDI in multi-brand retail by diluting 30 per cent sourcing clause and allowing foreign chains to set up shop even in cities with a population of less than 10 lakh.
The main opposition said it is "shameful" that even after one year of FDI being allowed in multi-brand retail there has been no significant foreign investment and also sought to know why the government had framed clauses in an "unthinking manner".

"It is surprising though that the government has also relaxed mandatory back-end infrastructure rules as well as in the case of FDI in retail. This was one of the biggest arguments made by the UPA to justify FDI in retail in the first place citing the lack of cold supply chain infrastructure among other things," Lekhi said.
Alleging that "flip-flop" by UPA dispensation is symptomatic of the irrational manner it has gone about economic policy making, she said this has made the country look like a "banana republic" to foreign investors.
The party also held the UPA's policies responsible for the slide of the rupee.

Lekhi said if BJP is voted to power, it will restore confidence of domestic and foreign investors with a stable and transparent policy regime.