Assocham Members Split On Fdi Issue

A source said the chambers apex body, which met three times during the past few weeks, has not succeeded in reconciling the divergent views of its members. This is likely to prolong the chambers efforts to revise its long-standing views on FDI.

Assocham, however, is expected to come out with its statement on the issue on December 16, when the management committee regroups in Calcutta for its next and probably final round of talks on the Thapar report.

The prominent personalities in Asso-cham include Hari Singhania, S M Datta, the chambers past president, H L Somany, the current president and Lalit Mohan Thapar.

 

Sources said a section of Assocham believes that the economy has been opened up too soon and advocates a cautious liberalisation policy.

This section is opposed to some of the main recommendations of the Thapar report, particularly the suggestion to raise equity participation by foreign partners to 75 per cent where a 51 per cent stake has already been allowed. Assocham had earlier set up a committee under L M Thapar to examine the chambers stated policy on FDI.

The move came close on the heels of a major debate raging in the other two chambers, the Federation of Indian Chambers of Commerce & Industry (Ficci) and the Confederation of Indian Industry (CII), on attracting FDI into the country.

Ficci had suggested mandatory disinvestment by foreign partners in joint ventures in the consumer goods sector. CII too had made statements denouncing the growing dominance of the MNCs in the country.