banner_ad

PM got past a split cabinet to push retail FDI

Last updated: 26 November 2011


It wasn't just a vocal opposition that was against the Cabinet's decision to allow 51% foreign direct investment (FDI) in multi-brand retail business. The cabinet itself was split down the middle, which had an animated — even heated — debate on the pros and cons of opening up a sector that was so far considered politically too sensitive for farmers, small traders and consumers.

Finally it took the prime minister to step in and send out a clear message: this must be done, in tune with his renewed push for liberalisation..

The most vociferous against the decision was railway minister Dinesh Trivedi of the Trinamool Congress. Even Congress ministers, including defence minister AK Antony and rural development minister Jairam Ramesh, are said to have cast their doubts on the issue.

Antony reportedly said Kerala, his home state, wouldn't accept the proposal. Ramesh pointed to the UP polls to show the decision's politically "inconvenient timing", though agriculture minister Sharad Pawar told him that the Congress wasn't not "expecting a rich dividend" in the state.

The proposal was backed strongly by finance minister Pranab Mukherjee, among others. He said there were enough safeguards to address concerns.

In fact, Mukherjee is believed to have lost his cool at Trivedi, who insisted that his party would never accept foreign companies coming and teaching "our farmers the basics of agriculture" and that multi-brand retail would take away jobs.

Mukherjee retorted, "You are a first-time MP and first-time minister. You do not understand the issue."

Trivedi then left the meeting, denying his party was creating a fuss. It took three cabinet ministers to persuade him to return.

Ultimately, Prime Minister Manmohan Singh closed the matter — "we can't delay it any further," he said, even while acknowledging that there were issues with the matter of FDI.


CCI Pro



News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.


Comments



More »


Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details