Tamilnadu Chief
Minister Dr. J. Jayalalithaa has always
been concerned about the welfare of the downtrodden people. So she never
failed to oppose anti-people measures, conveniently termed as “reform” undertaken
by the UPA government. In fact, reform is a much maligned word in this India and has come
to be associated with just price increase and foreign direct investment.
Dr. J. Jayalalithaa deserves appreciation for her stand in opposing FDI in retail trade,
insurance and pension funds. On 24th November, 2011, the Government of India
took the hasty, illogical and unsound decision to allow 51 percent foreign
direct investment (FDI) in multi-brand retail and 100 percent FDI in
single–brand retail. The decision to
allow FDI in retail trade evoked severe opposition from almost all political
parties, traders, farmers and the public in general. In fact, the Tamilnadu Chief Minister
immediately opposed the decision of the central government to allow FDI in
retail trade. She
expressed her strong resentment as follows: “The sudden decision of the Government of India to open up
Foreign Direct Investment up to 51
percent in multi-brand retailing and
(FDI) 100 percent for single brand retailing
has come as a rude shock to the
thunder struck millions of
traditional retail vendors in the
country….I strongly feel that this decision of the Government of India is a wrong
decision, taken and under pressure from
a few retail giants, who are starved for capital infusion
for their future survival….Therefore, I am constrained to state that my
Government will not allow the multi brand global players as permitted under the
new policy to set up their hyper markets
in Tamil Nadu.” Again when (on
October 9, 2012) the Union Cabinet ultimately took the retrograde step
to allow 51 percent FDI in multi-brand retail trade, Dr.J Jayalalitha vehemently
condemned the decision. She reiterated that:
"I would like to register my unequivocal opposition to the decision of the
central government to allow 51 percent FDI in multi-brand retailing and demand
that the central government should withdraw its decision immediately. Further,
my government will never allow FDI in retail trade in Tamil Nadu.” The firm
stand taken by her against allowing 51% FDI in retail trade has been acclaimed
by leaders of various like minded political parties, traders’ associations,
farmers’ bodies and the general public. Contd….
On October 5, 2012 the Cabinet cleared 49%
foreign direct investment (FDI) in the insurance sector, 26% in the pension
sector, cleared the Companies Bill 2011, amended the Forward Contracts
Regulation Act and the Competition Act. The decision to allow FDI in insurance
and pension has received the condemnation of a cross section of the society. Many experts believe that the new set of
economic reforms announced by India is not necessary to promote economic development and to
ensure welfare of the people. The UPA government is unwarrantably obsessed with
FDI. Cross country data show that FDI in vital sectors affecting the livelihood
of the people create more harm than benefit to the people. The Tamilnadu Chief
Minister is right in expressed strong
disapproval to the Centre allowing foreign direct investment in insurance and
pension funds sectors. She has blamed that the UPA Government at the Centre for
inflicting harm upon the people in the name of reform. According to her, "The UPA government is
unfazed at the sufferings of the common people, small traders and small farmers
.....This move at best is a gimmick and at worst an unworthy risk.'' She added,
"The act of disguising harmful decisions and promoting them under the name
of grand reforms amounts to deceiving the people of the country. No amount of rhetoric
will change the truth…
As to whether they have the right to jeopardise this crucial sector is a debatable issue."
As to whether they have the right to jeopardise this crucial sector is a debatable issue."
Many believe that it is unethical for the UPA
government to bring such anti-people “reforms” because it is now reduced to a
minority status. Trinamool Congress has already announced the withdrawal of
support to UPA government. The second biggest allay, DMK, has also stated that it
would not back the government on any resolution brought against the government
on FDI in multi-brand retail trade. The Tamil Nadu Chief Minister, Dr.
J.Jayalalithaa, has vehemently opposed the decisions. Samajwadi Party (SP)
supremo Mulayam Singh Yadav has expressed support to Mamata Banerjee's
resolution. Likewise, almost all opposition parties such as BJP, CPM, CPI,
Janatha Dal (United), Telugudesam Party, Bhahujan Samajwadi Party, and a host
of other minor parties have expressed their strong resentment. Therefore, there
is no chance for the UPA government to survive any no confidence motion brought
by Trinamool Congress or any other party. It is quite possible that the
government would find it extremely difficult muster adequate support for
raising the cap on foreign direct investment in insurance firms and open the
pension sector to foreign investors.
Dr.C.Murukadas, The Times of India, Oct.6,2012
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