Parliament's winter session has been stuck ever since it began Nov. 22 because of the impasse caused by the government's decision to allow 51 percent foreign direct investment in retails sector.
The Opposition parties and allies of the UPA government are against retail reform, but the government is not ready for a rollback.
Reacting to the protest against FDI in retail sector by Bharatiya Janata Party and the CPM, Finance Minister Pranab Mukherjee said that narrow political motives had come in the way, as the reform would significantly reduce post harvest losses and bring more employment. He added that it was up to the state governments to allow the FDI in retails in their respective states.
Prime Minister Manmohan Singh had earlier stated that retail reform would not only create more employment but also help fight inflation.
Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, has also clarified the doubts of the people that the entry of supermarkets would cause trouble to small shop owners. He said that the reform would help both the consumers and the farmers.
A few businessmen have expressed their concern over the present impasse in the Parliament which has obstructed the government from passing several important legislations.
"Political differences and vested interests should never be allowed to stand in the way of India's economic progress," tweeted Ratan Tata, head of the Tata Group.
"Amazing how politics work. Several MPs across party lines agree that FDI in retail is good but are compelled to object to (toe) party lines," tweeted Vijay Mallya, liquor baron and Member of Parliament.
Critics of the reform alleged that the entry of retail giants would kill traditional Indian bazaars and cause unemployment. Thousands of small shopkeepers went on a nation-wide strike Dec. 1 to protest the decision of the government to allow FDI in retail sector.
