FDI in retail: leave it to India, say foreign governments
10 Dec 2011
The shelving of the decision to allow foreign investment in multi-brand retail might not have surprised the keener political watchers - it had boiled down to a numbers game in Parliament, which the Congress could not muster.
Indian business leaders have been vocal in expressing their disappointment at the indefinite postponement of the move to allow 51-per cent foreign direct investment in multi-brand retail; but Western governments have been more muted in their response.
German acting ambassador Cord Meier-Klodt told The Indian Express today, ''This is a decision that the Indian government has to take. But from the German perspective, our view is that open, regulated markets always work best for all citizens - not just Indians, but everyone.''
In Washington, Robert D Hormats, undersecretary for economic growth, energy, and the environment, was supportive of the shenanigans the government is going through in implementing its decision to allow 51-per cent foreign direct investment in multi-brand retail.
He told reporters on Friday that though he believed the reform would benefit Indians, he would refrain from advising them on the issue.
"I think they have to work through their domestic political process and I don't want to comment on their internal affairs at this point," he said.
