21:09
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NEW DELHI: India’s struggling government endured a stormy parliamentary debate on Tuesday as opposition lawmakers demanded it reverse a decision to allow in foreign supermarket giants such as Walmart.
The Congress-led ruling coalition believes it has the numbers to win a vote in the lower house expected on Wednesday, and hopes that victory will enable it to push ahead with further contentious reforms to tackle the slowing economy.
Parliament had been deadlocked for days as opposition MPs held protests demanding the retail policy was put to a vote, even though it requires only cabinet approval and has already been declared law.
“Large retailers always pressurise the small farmers,” Sushma Swaraj, the fiery leader of the main opposition Bhartiya Janata Party (BJP), told parliament.
“No big retailer will compromise on profit, they will squeeze it from the farmers,” she said. “FDI (foreign direct investment) is the biggest economic mistake we can make.”
Supporters of the arrival of chains such as Walmart, Tesco and Carrefour say it would revolutionise shopping in India, with consumers shifting to large supermarkets, as well as improving the wasteful food-supply chain.
But the government’s plans were attacked by critics as a sellout to foreigners that will force family-owned stores, which currently dominate India’s retail landscape, out of business.
The coalition lost its majority in September when a key ally exited over the policy and, even though the vote is non-binding, Prime Minister Manmohan Singh would suffer a major setback if he fails to win enough support from lawmakers.
Indian media on Tuesday reported that Congress should win the vote in the lower house, but would rely on support from regional parties to win a vote in the upper house expected on Friday.
“I am confident that the motion moved by the BJP will be rejected... I am urging all parties not to subscribe to the politics of BJP,” Parliamentary Affairs Minister Kamal Nath told reporters.
Singh’s push for pro-market reforms comes as the government faces a sharply slowing economy, a gaping fiscal deficit and high inflation, which has stoked pressure on the left-leaning alliance.
The reforms package has been dubbed a second “big bang” following Singh’s efforts when he was finance minister to begin opening India’s economy to the world two decades ago.
While the retail decision did not require a parliamentary vote to become law, the government’s other proposals to open up the insurance and pensions markets to wider foreign investment will need lawmakers’ approval.
The Congress-led ruling coalition believes it has the numbers to win a vote in the lower house expected on Wednesday, and hopes that victory will enable it to push ahead with further contentious reforms to tackle the slowing economy.
Parliament had been deadlocked for days as opposition MPs held protests demanding the retail policy was put to a vote, even though it requires only cabinet approval and has already been declared law.
“Large retailers always pressurise the small farmers,” Sushma Swaraj, the fiery leader of the main opposition Bhartiya Janata Party (BJP), told parliament.
“No big retailer will compromise on profit, they will squeeze it from the farmers,” she said. “FDI (foreign direct investment) is the biggest economic mistake we can make.”
Supporters of the arrival of chains such as Walmart, Tesco and Carrefour say it would revolutionise shopping in India, with consumers shifting to large supermarkets, as well as improving the wasteful food-supply chain.
But the government’s plans were attacked by critics as a sellout to foreigners that will force family-owned stores, which currently dominate India’s retail landscape, out of business.
The coalition lost its majority in September when a key ally exited over the policy and, even though the vote is non-binding, Prime Minister Manmohan Singh would suffer a major setback if he fails to win enough support from lawmakers.
Indian media on Tuesday reported that Congress should win the vote in the lower house, but would rely on support from regional parties to win a vote in the upper house expected on Friday.
“I am confident that the motion moved by the BJP will be rejected... I am urging all parties not to subscribe to the politics of BJP,” Parliamentary Affairs Minister Kamal Nath told reporters.
Singh’s push for pro-market reforms comes as the government faces a sharply slowing economy, a gaping fiscal deficit and high inflation, which has stoked pressure on the left-leaning alliance.
The reforms package has been dubbed a second “big bang” following Singh’s efforts when he was finance minister to begin opening India’s economy to the world two decades ago.
While the retail decision did not require a parliamentary vote to become law, the government’s other proposals to open up the insurance and pensions markets to wider foreign investment will need lawmakers’ approval.
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