Attack against Indian people may not be resisted banking on discredited politicians
Opting for big bang reforms, Dr Manmohan`s all out attack against Indian people may not be resisted banking on discredited politicians and politics until the excluded , excommunicated masses comprising ninety nine percent population rise from the graveyard and stand united rock solid as resistance wall. Is it possible?
Troubled Galaxy Destroyed Dreams, Chapter: 801
Palash Biswas
Mobile: 919903717833
Skype ID: palash.biswas44
Email: palashbiswaskl@gmail.com
No wonder, Dr Manmohan Singh played his role most effectively for which he was planted in Indian Politics. Advantage Manmohan, he is neither a politician nor elected by the people directly. He is responsible not to Indian parliament nor the people of India as his liabilities root in corporate interest. Mind you,the Left withdrew support and the first UPA government not only survived but managed to romp home in the next election. The Corporate India and the Hindutva forces rallied behind him discarding the Sangh Pariwar and its political organ.Moreover, the third front allies which tried its best to pull down Manmohan projecting Ms Mayawati as the next prime minister face, most prominent amongst them were Mulayam Singh Yadav and Mayawati,supported Dr Manmohan and his UPA Second government. The mandate was manipulated to push for second generation reforms. Mind you, it was caste hindu polarisation led by Brahamin samaj and all the shankaracharya along with corporate media heads. The economist Dr Manmohan Singh has never been a politician and he is not least bothered about political fallout. He did succeed in 1991. For full two decades, the ruling hegemony did everything to accomplish his genocide agenda. All ideologies failed to organise whatsoever resistance. The left killed the trade union, peasant and student movement, the nucleus of popular uprising. Now, Indian politics is funded by corporate houses and MNCs. Political power is not all about vote bank this time. Thus,opting for big bang reforms, Dr Manmohan`s all out attack against Indian people may not be resisted banking on discredited politicians and politics until the excluded , excommunicated masses comprising ninety nine percent population rise from the graveyard and stand united rock solid as resistance wall. Is it possible? In a burst of major decisions that hope to kickstart the stagnating economy, the UPA government Friday allowed 51 per cent foreign direct investment in multi-brand retail, opened up the aviation sector to 49 per cent investment by foreign airlines and cleared stake sales in four public sector firms to raise Rs 15,000 crore, among others, Indian Express reports. The decisions, many of them politically sensitive, came a day after the government bit the bullet on fuel prices and raised the price of diesel and capped the subsidy on cooking gas to cut its fiscal deficit by Rs 20,300 crore.Battling perceptions of policy paralysis, the government announced the surprise decisions after meetings of the Union Cabinet as well as the Cabinet Committee on Economic Affairs (CCEA), prompting angry reactions from its key ally TMC as well as BJP and Left parties.It is noteworthy that the slew of reforms decided upon include raising FDI cap in broadcasting from 49 per cent to 74 per cent and allowing foreign investment in power exchanges.The elecronic media, which has emerged most powerful to create public opnion on false hypes, is ensured to support Dr Manmohan once again to manipulate the mandate in the next election as well!
Prime Minister Manmohan Singh warned that a prolonged policy logjam could slow economic growth to 5 percent, a day after India unexpectedly unveiled long-delayed reforms aimed at reviving growth and preventing a credit-rating downgrade.In light of the recent announcement of the government to introduce Foreign Direct Investment (FDI) in retail sector, the United Progressive Alliance (UPA-II) government is facing a backlash from its allies.Leading the charge of opposition is the UPA's top ally, Trinamool Congress (TMC) which threatened to pull the plug of coalition from the government if this policy was not taken back.UPA's outside supporter Janata Dal-Secular also was angry at the government's decision on multi-brand retail, terming it as "anti-people" and threatening to withdraw its outside support for the central government.The CPI(M)-led opposition Left Front on Saturday threatened to call a general strike in West Bengal this month if its demands for rollback on entry of FDI and hike in price of diesel and cut in subsidised LPG were not met.The four Left parties would observe a nationwide protest day on September 20, Front chairman Biman Bose said adding "we are in touch with the Samajwadi Party, Telugu Desam, JD(S), RJD and BJD."
The parliament was disabled for legislation in an unprecedented match fixing with surgical precision killing democratic set up and then the corporate government has now decided to take the plunge within days of the conclusion of recent session of Parliament which was disrupted over coal scam in a very preplanned to launch the monopolistic assault against the masses ninety nine percent.
"Let us not confuse consensus with unanimity. For unanimity we will have to wait in eternity. This (today's decision) has consensus," Commerce Minister Anand Sharma told a press conference clearly conveying the message that the Centre has decided to go ahead with the reforms despite opposition. However, opposition dares not to oppose the dictates of washington and corporate interests. The politics is modified as the best tool of open market economy of ethnic cleansing and exclusion, excommunication in all these twenty years and we may not get any exception anywhere. Thus, we happen to be predestined to be killed and persecuted in the free hunting ground!Eights states including Delhi, Jammu and Kashmir, Assam, Maharashtra, Rajasthan, Uttrakhand, Haryana and Manipur have supported FDI in multi-brand retailing while Bihar, Karnataka, Kerala, Madhya Pradesh, Tripura and Odisha have expressed reservations.
Unfazed by large scale protests over diesel price hike, Prime Minister Manmohan Singh on Saturday asserted it was a step in the right direction and expressed the hope that economy would rebound in the second half of the current fiscal.
Uttar Pradesh and BJP-ruled states today said they will not implement FDI in multi-brand retail which got the support of states like Jammu and Kashmir and Assam where Congress and allies are in power.
As the stand taken by state governments on executing Centre's decision yesterday to allow 51 per cent FDI in retail went along party lines, the BJD government in Odisha said it would examine the matter.
BSP also joined the BJP in opposing the FDI decision while the RJD backed the Centre.
BJP spokesperson Jagat Prakash Nadda said all states in which the party is in power are unanimous in their opposition to FDI in multi-brand retail.
The parties and alliances ruling in 11 major states including Gujarat, Uttar Pradesh and West Bengal have opposed the Centre's decision which has also been opposed by the AIADMK government in Tamil Nadu.
If one went by the 2011 Census data, there are 37 cities with more than one million population in 11 states ruled by the parties opposed to the decision.
Political opponents and a key UPA ally took to the streets on Saturday to protest Friday's move to allow foreign players into the supermarket industry and Thursday's decision to increase heavily subsidised diesel prices.
"We demand a rollback of diesel prices and no FDI (foreign direct investment) in retail should be allowed. Do not attack the livelihood of small traders," Mamata Banerjee, chief minister of West Bengal, told a rally attended by thousands in Kolkata.
Investors and others who hailed the reforms worry that Singh's government, weakened by a spate of scandals, will be forced to backtrack, as it did in its last attempt last year to allow in the likes of Wal-Mart Stores Inc and Carrefour.
Banerjee, whose Trinamool Congress party has been an unreliable ally to Singh's Congress party in the coalition, said the party would "take a tough decision" if the measures were not reversed, a hint she could withdraw the party's support.
Speaking at a meeting of India's planning commission to finalise investment targets for the five years to March 2017, Singh said the government would aim for 8.2 percent annual growth over that period, down from an earlier target of 9 percent. He also outlined three potential scenarios at Saturday's meeting.
"Scenario three is called a policy logjam. It reflects a situation where, for one reason or another, most of the policies needed to achieve scenario one are not taken," Singh said.
"If this continues for any length of time, vicious cycles begin to set in and growth could easily collapse to about 5 percent per annum with poor outcomes on inclusion."
With Singh's embattled government long unable to push through reforms to promote investment and shore up government finances, growth in Asia's third-largest economy has slowed to 5.5 percent or below in the past two quarters.
Credit rating agencies have warned of the risk of a downgrade to "junk" status.
On Friday, the government said it was opening up its supermarket sector to foreign chains and would allow more foreign investment in airlines and broadcasters. It also approved the sale of stakes in four state-run industries.
Singh said government policy initiatives such as the hike in diesel prices were aimed at reining in a widening fiscal deficit and reviving investor sentiment.
The government projects a fiscal deficit of 5.1 percent of gross domestic product in India's nearly $1.8 trillion economy in the current fiscal year ending in March, while many private economists predict it to reach 6 percent or more.
In New Delhi on Saturday, roughly 500 supporters of the main opposition Bharatiya Janata Party (BJP) protested against foreign direct investment in multibrand retail and the fuel price increase.
A belligerent Trinamool Congress chief Mamta Banerjee hit the streets in Kolkata to protest against the hike in diesel prices, a cap in delivery of subsidized LPG cylinders and FDI in multi-brand retail. The Samajwadi Party and Janata Dal (Secular), which are supporting Manmohan Singh government from the outside, are planning similar protests. The Bahujan Samaj Party will hold a a meeting and party chief Mayawati has said they will review their decision to support the government. The BJP-led Opposition coalition, NDA, is planning a nationwide stir. Other regional parties like the AIADMK and Biju Janata Dal are also planning protests in their respective states. The Left front is already in protest mode.First Post reports.Despite Mamata breathing fire, Congress confident of survival!
A senior official present at the full Planning Commission meeting in the morning said the mood among the senior ministers from the Congress was quite upbeat. The Prime Minister upfront justification, saying that “the recent increase in diesel prices is an important step in right direction”, and talking of “courage and some risk”, set the tone at the meeting.It has now been left to the strategists in the ruling Congress party to negotiate with the protesting allies, and parties supporting the UPA alliance from outside. Congress leader PC Chacko said the party did not see the possibility of Mamta Banerjee walking out materialising, and the UPA losing its majority in Parliament.
Trinamool Congress chief Mamata Banerjee on Saturday took to the streets with the warning that her party would take ‘hard’ decisions at the end of her 72—hour deadline set by her party if UPA government did not scrap FDI in retail, diesel price hike and limit on subsidised LPG.
“We have called a party meeting on Tuesday to discuss these issues. If the Centre does not roll back the hike in diesel price and withdraw decisions on FDI in multi—brand retail and curbs on LPG, we will take decisions, however hard they may be. I hope the people will not misunderstand,” Ms. Banerjee, who hit the streets here for a second time after the May petrol price hike, told a rally.
Expressing surprise over the government’s sudden big ticket reforms, Ms. Banerjee said “I don’t know what happened. So many decisions were taken on a single day. We want economic reforms that reaches the grassroots, not something that benefits a section. These are anti—people decisions.”
Ms. Banerjee, the West Bengal chief minister, however, said her party would not like to topple the UPA government.
“We are not in favour of quitting the government. We are always in favour of not breaking the alliance. But we are committed to the people.”
Ms. Banerjee said “we are the second largest ally of UPA and we could have got more cabinet berths. We have now only the Railway ministry but that hardly matters to us. What matters to us is the people.”
The leaders of the Samajwadi Party, Communist Party of India (Marxist), Communist Party of India, Telugu Desam Party, Biju Janata Dal, Janata Dal (S), All India Forward Bloc and Revolutionary Socialist Party have issued the following statement:
Nationwide Protest Day on September 20
The UPA government has stuck cruel blows on the people one after another.
· It has raised the price of diesel by Rs. 5 per litre stoking price rise and burdening the farmers.
· It has limited the subsidised gas cylinder per family to six and the rest will have to be bought at the market price which is more than double.
· It has opened the multi-brand retail trade to foreign supermarket chains endangering the livelihood of more than four crore people occupied in retail trade and the mass of consumers.
· It is selling off shares of profitable PSUs and navaratna companies like NALCO and Oil India.
We appeal to the people to rise in protest against these anti-people measures.
We appeal to the farmers, workers, women and youth to join the protest.
We appeal to the transporters, shopkeepers and traders organisations to join the struggle.
We appeal to all sections of the people, all patriotic-minded citizens to join the movement.
Let us all unite to stop these measures which will further burden the people and ruin their livelihood.
Let there be a powerful protest on September 20 through hartals, pickettings, demonstrations and court arrest programmes.
Reuters explained the process very well.It’s not every day that India makes such a dramatic move as raising diesel prices, or allowing foreign direct investment in its debt-walloped passenger airlines. It’s certainly not every day that it caps this 24-hour period by allowing foreign investment in retail businesses.In short, big international companies like Wal-Mart will be able to start their own shops in India, or will be able to buy up to 51 per cent of existing retail businesses. This could affect small grocery stores like Nilgiris in southern India all the way down to local street vendors.The government made all these moves as part of increasingly urgent efforts to firm up its sagging economy. While the diesel price rise of Rs 5 a litre and the retail moves are sure to cause a lot of anger and pain on the part of many Indians, the government has suddenly revealed a desire to think about the collective future of the country.While sceptics might expect the government to abandon moves that are politically risky, the ruling coalition that implemented the changes — particularly the ruling Congress Party — has silenced its worst critics. The much-awaited reform measures follow consistently disappointing news on the economic front with GDP growth in the first quarter slowing to 5.5 per cent. Besides, dire predictions have been made that this rate could further fall to 5 per cent if the government’s policy paralysis persisted.Friday’s decisions by the Cabinet and the Cabinet Committee on Economic Affairs also included allowing 49 per cent FDI in power exchanges — a move to attract more capital to the sector where exchange volumes account for only 3 per cent of the electricity sold. The government also eased conditions for single-brand retailers to operate in India by doing away with the clause that makes it compulsory for such retailers to source 30 per cent from small and medium enterprises.
The timing isn’t bad either, considering recent corruption scandals that have cast doubt on the ability of the coalition to lead effectively.So why all the activity all of a sudden? Asia’s third-largest economy was facing multiple threats of a credit rating downgrade. It also has its returning finance minister, P Chidambaram, back in control of the purse.And last of all, perhaps the government has found a new way of reining in its most recalcitrant political ally, the Trinamool Congress, led by Mamata Banerjee. The fact that the government has taken bold steps in 24 hours means they have a plan B ready if Banerjee threatens to pull out of the coalition.
Congress always had the backbone to pass big economic reforms. Doing them in the space of a day is evidence. But why did it take so long to get to the point where they had to do this, rather than making these moves earlier?
Monday is likely to witness another stock market rally, thanks in part to these moves. But India must look beyond the momentary satisfaction of raising a bunch of stocks. Now the hard work will include passing proposals to fix the banking and insurance businesses, traditionally a tough thing to do because it requires the government to cooperate with its opponents — and you know how that often goes.If they can pull this off and other moves, maybe it won’t be time just yet for the “I” in “BRIC” to stand for “Indonesia.”
The announcement to open up the bulk of India’s $535 billion retail sector that employs about 30 million people to foreign investors such as Wal-Mart and Tesco was cheered by industry bodies as “restarting the reforms process”.
“The series of policy decisions announced by the government today signal that India is on the move. They send out a clear message to the global investor community that the government is committed to taking forward the next generation economic reforms. More importantly, they will boost sentiment within the domestic industry and provide much needed momentum to the economy,” said Sunil Bharti Mittal, Group CEO of Bharti Enterprises.
But the UPA’s key alliance partner Trinamool Congress was quick to slam the announcements. About ten months back, opposition from the party had forced the government to defer its decision to allow foreign multi-brand retail.Indian Express reports.
The Cabinet has accordingly modified its approval this time, giving states the leeway to decide if they want to allow foreign investment in the sector under their respective shops & establishment acts, within their territorial jurisdictions. Commerce and Industry Minister Anand Sharma told reporters after the meeting of the Cabinet that the “suspension of government’s decision (November 24, 2011) therefore stands removed”. Eight states and two union territories have told the Centre they support the plan to open the sector saying it will boost the farm sector and curb food inflation.
The Cabinet meeting chaired by Prime Minister Manmohan Singh put an entry-rider in multi-brand retail by setting the minimum investment at $100 million, of which 50 per cent has to be in back-end processes or in building procurement capacities in rural areas. Also, these stores can be opened only in cities with a minimum population of of one million, with a dilution for hilly states.
An ICRIER study commissioned by the Commerce Ministry in 2010 had found that India was ranked the third most attractive destination among 30 emerging markets for foreign retailers.
Analysts said the decision to allow Indian aviation companies to court foreign investors could provide a lifeline to Kingfisher Airlines, hugely trapped in debt, as well as others such as SpiceJet. India had so far allowed foreign investment in the sector but barred foreign airlines. Friday’s decision reverses an almost 15-year-old policy but comes at a time when the global airline industry is largely cutting back on expansion plans.
The PSU stake sales approved by the Cabinet include the sale of 9.5 per cent in Hindustan Copper Ltd, 12.15 per cent in National Aluminium Co, a 9.33 per cent stake sale in MMTC and another 10 per cent in Oil India Ltd.
Government is "gravely mistaken" if it feels that it can shift focus from corruption with its decision on FDI in multi-brand retail, BJP leader LK Advani on Saturday said and warned that it was committing "harakiri".
Advani also attacked Prime Minister Manmohan Singh as the Coal Ministry was with him when the controversial coal blocks allocation was done, saying it "has made 'Coalgate' a fitting climax for exposure of the series of scams starting with the 2G and Commonwealth scams of 2008."
He said the government's decision to allow 51% FDI in multi-brand retail comes at a time when the coal scam was in focus across the country was viewed by some as a "desperate bid" to shift the focus of debate from corruption to 'reforms'.
"If government really thinks so, it is gravely mistaken," Advani said on his blog on Saturday, adding that the decision was taken on a day when the Supreme Court has put six pertinent questions to government about this coal scandal.
"The FDI in retail issue may actually prove for UPA nothing other than Harakiri (self destructive)," Advani said.
The BJP leader said, "The judiciary, the CAG and the opposition in Parliament, together with the media, have ensured that the corruption issue continues to dominate the people's mind until the next Lok Sabha elections."
He also hoped that the Congress will be decimated in the next Lok Sabha elections, claiming that the BJP will be the "biggest beneficiary".
"I sincerely hope that just as the 1977 election results have guaranteed that no government hereafter will think lightly of abusing the Emergency Article 352 again, the outcome of the forthcoming Assembly as well as Lok Sabha polls will make politicians realise the heavy cost they have to pay if their hands are seen by the electorate as sullied by corruption," he wrote on his blog.
As Mamata Banerjee is concerned, she is showcasing best of her political populist gimicks of no consequence. As Indian Express rightly comments, Uses the opportunity to seek state’s more share in tax revenue!
Here you are!
Reminiscent of the days ahead of Presidential election when Chief Minister Mamata Banerjee had tried to garner support for nomination APJ Abdul Kalam to corner the UPA government, the Trinamool Congress chief on Friday returned to the social-networking website to register strong protests against the Centre’s decision to hike the diesel price by Rs 5 per litre and limiting the subsidised LPG cylinders to six per year.
Mamata accused the COngress-led UPA government of not exploring alternative options to mobilise resources and pointed to recovery of “black money” as an alternative way to raise resources, which “could have given a respite to the common people”. “One should remember, if the kitchen is hurt, the woman is hurt, then the people at large become stronger to bring about a change,” she posted on her Facebook page.
“.... the Centre should now start thinking of utilising a large amount of black money lying in the country and abroad. A substantial amount of it can be gainfully utilised for developmental work. Further, a large amount of ‘benami’ assets and funds need to be unearthed. This can also be used for development of the country,” she wrote.
Earlier, speaking to mediapersons, Mamata used the opportunity to drive home the point that there are “anomalies in sharing the financial resources between the state and central governments”.
“In a federal structure, Centre is supreme. It makes policies and impose taxes. At the same time, the Centre takes away about 70 per cent of the tax proceeds collected from the states and leave behind a meagre 30 per cent for utilisation by the states. As per the present formula, our state receives only 2.3 per cent of the total taxes collected by the Centre. My state is very much willing to provide full relief to the common people and farmers affected by the increase in prices of domestic LPG and diesel. But at the same time, Centre must allow us to collect all taxes that are now taken away by the Centre. This will enable the state to provide full relief and subsidy,” she stated.
She further said that the Central government should always hear the voice of the states to make the federal structure work. “The state government is directly connected to the roots and feels the pulse of the common people and farmers. To make the federal democracy flourish, the voice of the state must be heard,” she added.
http://www.expressindia.com/latest-news/mamata-talks-of-getting-back-black-money-to-offset-fuel-hike/1002902/
Troubled Galaxy Destroyed Dreams, Chapter: 801
Palash Biswas
Mobile: 919903717833
Skype ID: palash.biswas44
Email: palashbiswaskl@gmail.com
No wonder, Dr Manmohan Singh played his role most effectively for which he was planted in Indian Politics. Advantage Manmohan, he is neither a politician nor elected by the people directly. He is responsible not to Indian parliament nor the people of India as his liabilities root in corporate interest. Mind you,the Left withdrew support and the first UPA government not only survived but managed to romp home in the next election. The Corporate India and the Hindutva forces rallied behind him discarding the Sangh Pariwar and its political organ.Moreover, the third front allies which tried its best to pull down Manmohan projecting Ms Mayawati as the next prime minister face, most prominent amongst them were Mulayam Singh Yadav and Mayawati,supported Dr Manmohan and his UPA Second government. The mandate was manipulated to push for second generation reforms. Mind you, it was caste hindu polarisation led by Brahamin samaj and all the shankaracharya along with corporate media heads. The economist Dr Manmohan Singh has never been a politician and he is not least bothered about political fallout. He did succeed in 1991. For full two decades, the ruling hegemony did everything to accomplish his genocide agenda. All ideologies failed to organise whatsoever resistance. The left killed the trade union, peasant and student movement, the nucleus of popular uprising. Now, Indian politics is funded by corporate houses and MNCs. Political power is not all about vote bank this time. Thus,opting for big bang reforms, Dr Manmohan`s all out attack against Indian people may not be resisted banking on discredited politicians and politics until the excluded , excommunicated masses comprising ninety nine percent population rise from the graveyard and stand united rock solid as resistance wall. Is it possible? In a burst of major decisions that hope to kickstart the stagnating economy, the UPA government Friday allowed 51 per cent foreign direct investment in multi-brand retail, opened up the aviation sector to 49 per cent investment by foreign airlines and cleared stake sales in four public sector firms to raise Rs 15,000 crore, among others, Indian Express reports. The decisions, many of them politically sensitive, came a day after the government bit the bullet on fuel prices and raised the price of diesel and capped the subsidy on cooking gas to cut its fiscal deficit by Rs 20,300 crore.Battling perceptions of policy paralysis, the government announced the surprise decisions after meetings of the Union Cabinet as well as the Cabinet Committee on Economic Affairs (CCEA), prompting angry reactions from its key ally TMC as well as BJP and Left parties.It is noteworthy that the slew of reforms decided upon include raising FDI cap in broadcasting from 49 per cent to 74 per cent and allowing foreign investment in power exchanges.The elecronic media, which has emerged most powerful to create public opnion on false hypes, is ensured to support Dr Manmohan once again to manipulate the mandate in the next election as well!
Prime Minister Manmohan Singh warned that a prolonged policy logjam could slow economic growth to 5 percent, a day after India unexpectedly unveiled long-delayed reforms aimed at reviving growth and preventing a credit-rating downgrade.In light of the recent announcement of the government to introduce Foreign Direct Investment (FDI) in retail sector, the United Progressive Alliance (UPA-II) government is facing a backlash from its allies.Leading the charge of opposition is the UPA's top ally, Trinamool Congress (TMC) which threatened to pull the plug of coalition from the government if this policy was not taken back.UPA's outside supporter Janata Dal-Secular also was angry at the government's decision on multi-brand retail, terming it as "anti-people" and threatening to withdraw its outside support for the central government.The CPI(M)-led opposition Left Front on Saturday threatened to call a general strike in West Bengal this month if its demands for rollback on entry of FDI and hike in price of diesel and cut in subsidised LPG were not met.The four Left parties would observe a nationwide protest day on September 20, Front chairman Biman Bose said adding "we are in touch with the Samajwadi Party, Telugu Desam, JD(S), RJD and BJD."
The parliament was disabled for legislation in an unprecedented match fixing with surgical precision killing democratic set up and then the corporate government has now decided to take the plunge within days of the conclusion of recent session of Parliament which was disrupted over coal scam in a very preplanned to launch the monopolistic assault against the masses ninety nine percent.
"Let us not confuse consensus with unanimity. For unanimity we will have to wait in eternity. This (today's decision) has consensus," Commerce Minister Anand Sharma told a press conference clearly conveying the message that the Centre has decided to go ahead with the reforms despite opposition. However, opposition dares not to oppose the dictates of washington and corporate interests. The politics is modified as the best tool of open market economy of ethnic cleansing and exclusion, excommunication in all these twenty years and we may not get any exception anywhere. Thus, we happen to be predestined to be killed and persecuted in the free hunting ground!Eights states including Delhi, Jammu and Kashmir, Assam, Maharashtra, Rajasthan, Uttrakhand, Haryana and Manipur have supported FDI in multi-brand retailing while Bihar, Karnataka, Kerala, Madhya Pradesh, Tripura and Odisha have expressed reservations.
Unfazed by large scale protests over diesel price hike, Prime Minister Manmohan Singh on Saturday asserted it was a step in the right direction and expressed the hope that economy would rebound in the second half of the current fiscal.
Uttar Pradesh and BJP-ruled states today said they will not implement FDI in multi-brand retail which got the support of states like Jammu and Kashmir and Assam where Congress and allies are in power.
As the stand taken by state governments on executing Centre's decision yesterday to allow 51 per cent FDI in retail went along party lines, the BJD government in Odisha said it would examine the matter.
BSP also joined the BJP in opposing the FDI decision while the RJD backed the Centre.
BJP spokesperson Jagat Prakash Nadda said all states in which the party is in power are unanimous in their opposition to FDI in multi-brand retail.
The parties and alliances ruling in 11 major states including Gujarat, Uttar Pradesh and West Bengal have opposed the Centre's decision which has also been opposed by the AIADMK government in Tamil Nadu.
If one went by the 2011 Census data, there are 37 cities with more than one million population in 11 states ruled by the parties opposed to the decision.
Political opponents and a key UPA ally took to the streets on Saturday to protest Friday's move to allow foreign players into the supermarket industry and Thursday's decision to increase heavily subsidised diesel prices.
"We demand a rollback of diesel prices and no FDI (foreign direct investment) in retail should be allowed. Do not attack the livelihood of small traders," Mamata Banerjee, chief minister of West Bengal, told a rally attended by thousands in Kolkata.
Investors and others who hailed the reforms worry that Singh's government, weakened by a spate of scandals, will be forced to backtrack, as it did in its last attempt last year to allow in the likes of Wal-Mart Stores Inc and Carrefour.
Banerjee, whose Trinamool Congress party has been an unreliable ally to Singh's Congress party in the coalition, said the party would "take a tough decision" if the measures were not reversed, a hint she could withdraw the party's support.
Speaking at a meeting of India's planning commission to finalise investment targets for the five years to March 2017, Singh said the government would aim for 8.2 percent annual growth over that period, down from an earlier target of 9 percent. He also outlined three potential scenarios at Saturday's meeting.
"Scenario three is called a policy logjam. It reflects a situation where, for one reason or another, most of the policies needed to achieve scenario one are not taken," Singh said.
"If this continues for any length of time, vicious cycles begin to set in and growth could easily collapse to about 5 percent per annum with poor outcomes on inclusion."
With Singh's embattled government long unable to push through reforms to promote investment and shore up government finances, growth in Asia's third-largest economy has slowed to 5.5 percent or below in the past two quarters.
Credit rating agencies have warned of the risk of a downgrade to "junk" status.
On Friday, the government said it was opening up its supermarket sector to foreign chains and would allow more foreign investment in airlines and broadcasters. It also approved the sale of stakes in four state-run industries.
Singh said government policy initiatives such as the hike in diesel prices were aimed at reining in a widening fiscal deficit and reviving investor sentiment.
The government projects a fiscal deficit of 5.1 percent of gross domestic product in India's nearly $1.8 trillion economy in the current fiscal year ending in March, while many private economists predict it to reach 6 percent or more.
In New Delhi on Saturday, roughly 500 supporters of the main opposition Bharatiya Janata Party (BJP) protested against foreign direct investment in multibrand retail and the fuel price increase.
A belligerent Trinamool Congress chief Mamta Banerjee hit the streets in Kolkata to protest against the hike in diesel prices, a cap in delivery of subsidized LPG cylinders and FDI in multi-brand retail. The Samajwadi Party and Janata Dal (Secular), which are supporting Manmohan Singh government from the outside, are planning similar protests. The Bahujan Samaj Party will hold a a meeting and party chief Mayawati has said they will review their decision to support the government. The BJP-led Opposition coalition, NDA, is planning a nationwide stir. Other regional parties like the AIADMK and Biju Janata Dal are also planning protests in their respective states. The Left front is already in protest mode.First Post reports.Despite Mamata breathing fire, Congress confident of survival!
A senior official present at the full Planning Commission meeting in the morning said the mood among the senior ministers from the Congress was quite upbeat. The Prime Minister upfront justification, saying that “the recent increase in diesel prices is an important step in right direction”, and talking of “courage and some risk”, set the tone at the meeting.It has now been left to the strategists in the ruling Congress party to negotiate with the protesting allies, and parties supporting the UPA alliance from outside. Congress leader PC Chacko said the party did not see the possibility of Mamta Banerjee walking out materialising, and the UPA losing its majority in Parliament.
Trinamool Congress chief Mamata Banerjee on Saturday took to the streets with the warning that her party would take ‘hard’ decisions at the end of her 72—hour deadline set by her party if UPA government did not scrap FDI in retail, diesel price hike and limit on subsidised LPG.
“We have called a party meeting on Tuesday to discuss these issues. If the Centre does not roll back the hike in diesel price and withdraw decisions on FDI in multi—brand retail and curbs on LPG, we will take decisions, however hard they may be. I hope the people will not misunderstand,” Ms. Banerjee, who hit the streets here for a second time after the May petrol price hike, told a rally.
Expressing surprise over the government’s sudden big ticket reforms, Ms. Banerjee said “I don’t know what happened. So many decisions were taken on a single day. We want economic reforms that reaches the grassroots, not something that benefits a section. These are anti—people decisions.”
Ms. Banerjee, the West Bengal chief minister, however, said her party would not like to topple the UPA government.
“We are not in favour of quitting the government. We are always in favour of not breaking the alliance. But we are committed to the people.”
Ms. Banerjee said “we are the second largest ally of UPA and we could have got more cabinet berths. We have now only the Railway ministry but that hardly matters to us. What matters to us is the people.”
The leaders of the Samajwadi Party, Communist Party of India (Marxist), Communist Party of India, Telugu Desam Party, Biju Janata Dal, Janata Dal (S), All India Forward Bloc and Revolutionary Socialist Party have issued the following statement:
Nationwide Protest Day on September 20
The UPA government has stuck cruel blows on the people one after another.
· It has raised the price of diesel by Rs. 5 per litre stoking price rise and burdening the farmers.
· It has limited the subsidised gas cylinder per family to six and the rest will have to be bought at the market price which is more than double.
· It has opened the multi-brand retail trade to foreign supermarket chains endangering the livelihood of more than four crore people occupied in retail trade and the mass of consumers.
· It is selling off shares of profitable PSUs and navaratna companies like NALCO and Oil India.
We appeal to the people to rise in protest against these anti-people measures.
We appeal to the farmers, workers, women and youth to join the protest.
We appeal to the transporters, shopkeepers and traders organisations to join the struggle.
We appeal to all sections of the people, all patriotic-minded citizens to join the movement.
Let us all unite to stop these measures which will further burden the people and ruin their livelihood.
Let there be a powerful protest on September 20 through hartals, pickettings, demonstrations and court arrest programmes.
Reuters explained the process very well.It’s not every day that India makes such a dramatic move as raising diesel prices, or allowing foreign direct investment in its debt-walloped passenger airlines. It’s certainly not every day that it caps this 24-hour period by allowing foreign investment in retail businesses.In short, big international companies like Wal-Mart will be able to start their own shops in India, or will be able to buy up to 51 per cent of existing retail businesses. This could affect small grocery stores like Nilgiris in southern India all the way down to local street vendors.The government made all these moves as part of increasingly urgent efforts to firm up its sagging economy. While the diesel price rise of Rs 5 a litre and the retail moves are sure to cause a lot of anger and pain on the part of many Indians, the government has suddenly revealed a desire to think about the collective future of the country.While sceptics might expect the government to abandon moves that are politically risky, the ruling coalition that implemented the changes — particularly the ruling Congress Party — has silenced its worst critics. The much-awaited reform measures follow consistently disappointing news on the economic front with GDP growth in the first quarter slowing to 5.5 per cent. Besides, dire predictions have been made that this rate could further fall to 5 per cent if the government’s policy paralysis persisted.Friday’s decisions by the Cabinet and the Cabinet Committee on Economic Affairs also included allowing 49 per cent FDI in power exchanges — a move to attract more capital to the sector where exchange volumes account for only 3 per cent of the electricity sold. The government also eased conditions for single-brand retailers to operate in India by doing away with the clause that makes it compulsory for such retailers to source 30 per cent from small and medium enterprises.
The timing isn’t bad either, considering recent corruption scandals that have cast doubt on the ability of the coalition to lead effectively.So why all the activity all of a sudden? Asia’s third-largest economy was facing multiple threats of a credit rating downgrade. It also has its returning finance minister, P Chidambaram, back in control of the purse.And last of all, perhaps the government has found a new way of reining in its most recalcitrant political ally, the Trinamool Congress, led by Mamata Banerjee. The fact that the government has taken bold steps in 24 hours means they have a plan B ready if Banerjee threatens to pull out of the coalition.
Congress always had the backbone to pass big economic reforms. Doing them in the space of a day is evidence. But why did it take so long to get to the point where they had to do this, rather than making these moves earlier?
Monday is likely to witness another stock market rally, thanks in part to these moves. But India must look beyond the momentary satisfaction of raising a bunch of stocks. Now the hard work will include passing proposals to fix the banking and insurance businesses, traditionally a tough thing to do because it requires the government to cooperate with its opponents — and you know how that often goes.If they can pull this off and other moves, maybe it won’t be time just yet for the “I” in “BRIC” to stand for “Indonesia.”
The announcement to open up the bulk of India’s $535 billion retail sector that employs about 30 million people to foreign investors such as Wal-Mart and Tesco was cheered by industry bodies as “restarting the reforms process”.
“The series of policy decisions announced by the government today signal that India is on the move. They send out a clear message to the global investor community that the government is committed to taking forward the next generation economic reforms. More importantly, they will boost sentiment within the domestic industry and provide much needed momentum to the economy,” said Sunil Bharti Mittal, Group CEO of Bharti Enterprises.
But the UPA’s key alliance partner Trinamool Congress was quick to slam the announcements. About ten months back, opposition from the party had forced the government to defer its decision to allow foreign multi-brand retail.Indian Express reports.
The Cabinet has accordingly modified its approval this time, giving states the leeway to decide if they want to allow foreign investment in the sector under their respective shops & establishment acts, within their territorial jurisdictions. Commerce and Industry Minister Anand Sharma told reporters after the meeting of the Cabinet that the “suspension of government’s decision (November 24, 2011) therefore stands removed”. Eight states and two union territories have told the Centre they support the plan to open the sector saying it will boost the farm sector and curb food inflation.
The Cabinet meeting chaired by Prime Minister Manmohan Singh put an entry-rider in multi-brand retail by setting the minimum investment at $100 million, of which 50 per cent has to be in back-end processes or in building procurement capacities in rural areas. Also, these stores can be opened only in cities with a minimum population of of one million, with a dilution for hilly states.
An ICRIER study commissioned by the Commerce Ministry in 2010 had found that India was ranked the third most attractive destination among 30 emerging markets for foreign retailers.
Analysts said the decision to allow Indian aviation companies to court foreign investors could provide a lifeline to Kingfisher Airlines, hugely trapped in debt, as well as others such as SpiceJet. India had so far allowed foreign investment in the sector but barred foreign airlines. Friday’s decision reverses an almost 15-year-old policy but comes at a time when the global airline industry is largely cutting back on expansion plans.
The PSU stake sales approved by the Cabinet include the sale of 9.5 per cent in Hindustan Copper Ltd, 12.15 per cent in National Aluminium Co, a 9.33 per cent stake sale in MMTC and another 10 per cent in Oil India Ltd.
Government is "gravely mistaken" if it feels that it can shift focus from corruption with its decision on FDI in multi-brand retail, BJP leader LK Advani on Saturday said and warned that it was committing "harakiri".
Advani also attacked Prime Minister Manmohan Singh as the Coal Ministry was with him when the controversial coal blocks allocation was done, saying it "has made 'Coalgate' a fitting climax for exposure of the series of scams starting with the 2G and Commonwealth scams of 2008."
He said the government's decision to allow 51% FDI in multi-brand retail comes at a time when the coal scam was in focus across the country was viewed by some as a "desperate bid" to shift the focus of debate from corruption to 'reforms'.
"If government really thinks so, it is gravely mistaken," Advani said on his blog on Saturday, adding that the decision was taken on a day when the Supreme Court has put six pertinent questions to government about this coal scandal.
"The FDI in retail issue may actually prove for UPA nothing other than Harakiri (self destructive)," Advani said.
The BJP leader said, "The judiciary, the CAG and the opposition in Parliament, together with the media, have ensured that the corruption issue continues to dominate the people's mind until the next Lok Sabha elections."
He also hoped that the Congress will be decimated in the next Lok Sabha elections, claiming that the BJP will be the "biggest beneficiary".
"I sincerely hope that just as the 1977 election results have guaranteed that no government hereafter will think lightly of abusing the Emergency Article 352 again, the outcome of the forthcoming Assembly as well as Lok Sabha polls will make politicians realise the heavy cost they have to pay if their hands are seen by the electorate as sullied by corruption," he wrote on his blog.
As Mamata Banerjee is concerned, she is showcasing best of her political populist gimicks of no consequence. As Indian Express rightly comments, Uses the opportunity to seek state’s more share in tax revenue!
Here you are!
Reminiscent of the days ahead of Presidential election when Chief Minister Mamata Banerjee had tried to garner support for nomination APJ Abdul Kalam to corner the UPA government, the Trinamool Congress chief on Friday returned to the social-networking website to register strong protests against the Centre’s decision to hike the diesel price by Rs 5 per litre and limiting the subsidised LPG cylinders to six per year.
Mamata accused the COngress-led UPA government of not exploring alternative options to mobilise resources and pointed to recovery of “black money” as an alternative way to raise resources, which “could have given a respite to the common people”. “One should remember, if the kitchen is hurt, the woman is hurt, then the people at large become stronger to bring about a change,” she posted on her Facebook page.
“.... the Centre should now start thinking of utilising a large amount of black money lying in the country and abroad. A substantial amount of it can be gainfully utilised for developmental work. Further, a large amount of ‘benami’ assets and funds need to be unearthed. This can also be used for development of the country,” she wrote.
Earlier, speaking to mediapersons, Mamata used the opportunity to drive home the point that there are “anomalies in sharing the financial resources between the state and central governments”.
“In a federal structure, Centre is supreme. It makes policies and impose taxes. At the same time, the Centre takes away about 70 per cent of the tax proceeds collected from the states and leave behind a meagre 30 per cent for utilisation by the states. As per the present formula, our state receives only 2.3 per cent of the total taxes collected by the Centre. My state is very much willing to provide full relief to the common people and farmers affected by the increase in prices of domestic LPG and diesel. But at the same time, Centre must allow us to collect all taxes that are now taken away by the Centre. This will enable the state to provide full relief and subsidy,” she stated.
She further said that the Central government should always hear the voice of the states to make the federal structure work. “The state government is directly connected to the roots and feels the pulse of the common people and farmers. To make the federal democracy flourish, the voice of the state must be heard,” she added.
http://www.expressindia.com/latest-news/mamata-talks-of-getting-back-black-money-to-offset-fuel-hike/1002902/
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