The UPA government is in a fix following its decision to allow Foreign Direct Investment in the retail sector.
It has created uproar in the Parliament's winter session, adjourning both the houses for six consecutive days. However, Prime Minister Manmohan Singh is still adamant that the retail reform be pushed through, citing the benefits it will give to the farmers in the long run.
Singh said FDI in the retail sector would help bring modern technology in the farm sector, less wastage and more jobs, in contrast to the allegations of the opposition party that it would harm farmers. He added that government measures would ensure less inflation in the next few months.
Meanwhile, senior Congress leaders have called for a meeting this afternoon to end the impasse caused by the decision to let foreign investors own up to 51 percent of retailers. Singh and Congress President Sonia Gandhi will attend the meeting.
The deadlock on retail reform has caused lots of fluctuation in the share market too. BSE Sensex climbed a few days ago, especially the shares of retail brands, after the Cabinet announced its decision to allow supermarket giants to enter India. However, protests by various political parties not to allow FDI in retails have adversely affected India's share market.
