Mamata scores a point with FDI retail resolution industry unhappy

With a token resolution against the entry of domestic capital and foreign direct investment (FDI) in the retail sector in the West Bengal assembly, Mamata Banerjee scored on the political front. But for investors, it was another negative vibe, reinforcing the state’s anti-industry image.

Her Trinamool Congress (TMC) wants to “expose” the CPI(M) on the FDI issue, by hijacking its protest against the move in the retail sector.

“In 2007, when we had introduced a similar resolution, both the Congress and the Left defeated it jointly. Now, they are showing solidarity for small traders. This is a double standard,” said industry minister Partha Chatterjee.

 

TMC’s claim of success is reiterated by the Left staging a walk-out after the resolution was introduced, as the party’s amendments were not considered. While political parties continued with their bickering, industry saw it as yet another blow.

“I know it is a resolution, but that is not the point. One action doesn't create a pattern but multiple actions do and the pattern is that there is a healthy disrespect for industry. It is not that retailers are waiting outside the Bengal border to enter; no one is,” said Harsh K Jha, president, Bengal Chamber of Commerce & Industry and managing director, Tata Metaliks.

The resolution needs the backing of executive orders or legislation for implementation.

Meanwhile, the TMC chief is also scheduled to hold a protest at Jantar Mantar in Delhi on Monday to oppose the Centre’s recent reform measures, including retail FDI.

TMC sources said Banerjee had deputed former railway minister Mukul Roy and party MP K D Singh to oversee the arrangements.

A resolution means view of the assembly. However, to implement it (to block FDI or large domestic capital in the state) it is not necessary to bring in a legislation; even an executive decision by the state will do. Even allowing FDI in multi-brand retail was an executive decision,” said Subhash Kashyap, and expert on Constitution.

The government has ruled out the possibility of any executive orders or legislation. Firhad Hakim, state minister of municipal affairs and urban development, clarified that the resolution would not culminate into any legislation or executive order. “This is to spread consciousness against FDI in retail,” he said.

Bureaucrats, too, claimed that the resolution was more of a statement of intent.