Premium
This is an archive article published on September 23, 2012

BJP FDI warning to investors: ‘what if govt changes?’

In a veiled warning to potential foreign investors,the BJP Saturday highlighted the risks involved in investing in multi-brand retail sector,which the Centre has opened to FDI.

In a veiled warning to potential foreign investors,the BJP Saturday highlighted the risks involved in investing in multi-brand retail sector,which the Centre has opened to FDI.

“The implementation of this earth-shaking reform is to be decided by the states. We are going to have elections in Rajasthan and Delhi. An efficient company like Walmart has said it will take 18 months to come to India. What if the government changes? What is the certainty the new governments will continue the policy on FDI. I guess investors will remember this,” former finance minister and senior BJP leader Yashwant Sinha said.

The veiled warning,coming as it does from a party that is in power in nine states,is significant as it could deter potential big investors.

Story continues below this ad

Sinha said he expected the potential investors will be aware of the implications of political realities arising out the loopholes in government’s decision to allow FDI in retail.

“This FDI in multi-brand retail is so full of holes,so full of problems that I am not sure which investor will take the risk to invest,” Sinha said,faulting the government’s FDI in retail policy.

He charged the UPA of painting “rosy picture” but failing to deliver,saying that the government promised nuclear power for electricity to every household at the time of Indo-US nuclear deal but failed to get any additional power from the deal.

Sinha made light of the government’s projection of its tough decisions,saying the government’s decisions were not reforms at all.

Story continues below this ad

“For this government,reforms mean foreign investments and foreign investments alone,” he said.

Sinha alleged that Prime Minister’s alleged “mismanagement” of the country’s economy over last eight years has given rise to a situation where the government is relying on FDI alone to ward off the economic slowdown. “We could have thought of accepting (these decisions) had the Prime Minister accepted that they have mismanaged the economy in last eight years (of UPA rule),” Sinha said.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement