Mamata just struck the bull's eye
It was our duty to save the government. But the bigger duty is to save the country! Mamata just struck the bull`s eye and emerged as the leader of the people to lead from the front in resistance of reforms.
Palash Biswas
Mobile: 919903717833
Skype ID: palash.biswas44
Email: palashbiswaskl@gmail.com
Accusing the central government of indulging in corrupt activities,Mamata Banerjee declared, "It was our duty to save the government. But the bigger duty is to save the country...We cannot be with a corrupt government."She also questioned the method of functioning of the central government. Attacking the government on the FDI in retail and price rise, Trinamool Congress chief Mamata Banerjee today indicated that her party may bring a 'no-confidence motion' against it in the next Parliament Session and appealed to various political parties to support it.Accusing the UPA government of acting against the interests of the common man, Banerjee said her party will campaign across the country from next month.As part of this plan, she announced that TMC will hold a 48-hour dharna on November 19 and 20 in Delhi. She, however, said later that since these dates coincided with the festival of 'Chhat Puja', she accordingly had decided to shift the proposed agitation to November 22 and 23.
No Indian politician match Mamata in street fight, mind you.Main opposition BJP fails to lead the nation just because it is committed to the reform agenda. But NDA convenor and JDU chief Sharad Yadav stood with Mamata which is the indication of imminent reshuffle in political equations.However,the Jantar Mantar Mamata act challenged the ruling hegemony most since free market economy introduced.The act ensured ouster of the left from future political equation of third front. Mamata just struck the bull`s eye and emerged as the leader of the people to lead from the front in resistance of reforms.Contrararily the left reduced itself into a regional outfit as it organised a CPIM rally in Kolkata just to oppose Mamata Banerjee and failed to address the burning questions!
Jharkhand Vikas Morcha (Prajatantric), which has two MPs in Lok Sabha, on Monday withdrew its support to the UPA government for its "anti-people policies".
The announcement of withdrawal of support was made by its Principal General Secretary Pradip Yadav and the party's Lok Sabha member Ajay Kumar at a joint press conference here.
Besides Kumar, party president and former chief minister Babulal Marandi is JVM's other MP. "We are withdrawing support to the UPA government for its anti-people policies. We will meet President Pranab Mukherjee and submit the letter of withdrawal soon," they said.
"Our party is against FDI in retail, hike in diesel price and cap on LPG cylinders," they said.
Worser development for Congress as the DMK president M. Karunanidhi said on Monday if the Opposition moved a resolution in Parliament against Foreign Direct Investment in multi-brand retail sector, the DMK would support it.
Asked about Prime Minister Manmohan Singh’s assertion that there was no question of going back on reforms, even though the DMK had expressed it objections, he said he could not take the Prime Minister’s statement as a challenge.
“We are keen on addressing the people’s problems and we hope the Prime Minister will consider our feelings,” he said.
But he sought to play down the question of forming a third front, saying the question should be addressed to those leaders who were trying to form it.
“I am not thinking about a third front and it is unfair to ask me to answer a question on that subject,” he added.
Mr Karunanidhi also declined to answer a question on the BJP’s campaign that the country would soon witness elections to the Lok Sabha, saying he was not interested in “astrological predictions.”
Mr Karunanidhi, however, said DMK is extending support to the Congress-led UPA at the Centre despite many differences, including one on allowing foreign direct investment in multi-brand retail, because it wants to prevent a “communal and reactionary” government from assuming office, party president M. Karunanidhi said on Monday.
Talking to reporters after a high-level executive committee meeting here, he also made it clear that differences on various issues would not come in the way of his party’s relationship with the Congress.
“The differences can be sorted out through talks. So, the differences will not affect our relationship with the Congress,” he said.
CPI(M) on Sunday threatened to stage country-wide protests over Centre's decision to allow FDI in multi-brand retail, with party leader Prakash Karat saying he agreed with Mamata Banerjee's statement on "UPA looting in the name of reforms".
"We will not allow FDI (in multi-brand retail) to come up in any state. We will stage protests across the country", CPI(M) General Secretaray Karat told reporters here at the sidelines of a function.
To a query on West Bengal Chief Minister Mamata Banerjee's criticism of the UPA government's economic policies alleging "looting is on in the name of aam admi and reforms", Karat said he agreed with what she had said.
"I agree with what Mamata Banerjee said about UPA looting in the name of reforms. That is what is happening in India," he said.
Banerjee had said in her post in social networking website Facebook that "Reforms are meant to usher development for the people. Nowadays, the trend is whenever any anti-people decision is taken, it is taken in the name of reforms."
The Government had on September 14 allowed 51% FDI in multi-brand retail but left it to the states to permit global retailers to open stores following which the Trinamool had withdrawn support to the government and will hold protest tomorrow in Delhi on the issue.
Seeking to punch holes in BJP’s opposition to allowing Foreign Direct Investment in multi-brand retail, Union Commerce Minister Anand Sharma on Monday said the NDA government had readied a Cabinet note favouring 100 per cent FDI in the sector.
Addressing a gathering of Congress supporters in New Delhi, Mr. Sharma lambasted the BJP for trying to “mislead” the country on the issue and asserted that UPA government had taken the decision with “conviction” and “clarity” and there will not be any rethink on it.
“When it (BJP) was in power, a cabinet note was prepared. I had urged repeatedly that let the Parliament function. I would have tabled the Cabinet note seeking to allow 100 per cent FDI in retail,” Mr. Sharma said, attacking the BJP on the issue.
To counter the opposition parties, the Congress will organise a “big rally” at Ramlila Maidan here on October 28 which will be addressed by Prime Minister Manmohan Singh, party president Sonia Gandhi besides other senior leaders.
Mr. Sharma said government has taken the decision to allow 51 per cent FDI in multi-brand retail considering the economic fundamentals and ground realities of the country and BJP’s opposition to it reflected the party’s “hollowness”.
“We have framed the policy considering the ground realities and the social and economic disparities in the country,” he said adding, it is people of India who have approved the policy and it has not been brought in under the influence of any other country.
Mr. Sharma was addressing a gathering at Chief Minister Sheila Dikshit’s residence, which was organised to educate party workers on the issue.
Meanwhile, Indian shares closed at a more than 14-month high Monday, led by gains in software stocks ahead of quarterly results, with Infosys to announce its second-quarter figures on Oct. 12.
India's manufacturing activity growth in September held steady compared with August, supported by a pick up in export orders and output, a survey of businesses in India showed on Monday, but an increase in inventories could hurt growth in the future.The HSBC manufacturing purchasing managers' index (PMI), which gauges the business activity of India's factories but not its utilities, held steady at 52.8 in September from 52.8 in August, which was a nine-month low.Still, the index has remained above 50, which divides growth and contraction, for more than three years.Measures by the U.S. Federal Reserve and the European Central Bank to resuscitate their economies pushed foreign demand for Indian goods higher.
The government could amend controversial rules on tax avoidance within 20 days, the finance minister said on Monday, potentially ending months of uncertainty after the prime minister ordered a panel to clarify the tax proposals that had hurt investor confidence.The finalized General Anti-Avoidance Rules (GAAR), which would target companies and investors routing money through tax havens, are expected to be softer on investors than originally proposed in the budget.The government's moves to toughen tax collection had triggered an outcry from global industry groups and it was blamed for a drop off in investment flows into India. In response, Prime Minister Manmohan Singh set up the Shome committee to look at ways of addressing concerns that the new laws were arbitrary.
Finance Minister P Chidambaram wants the Reserve Bank to "walk in the same direction" as the government by cutting interest rates in response to sweeping reforms to rules governing foreign investment and politically-difficult cuts in fuel subsidies.Economic Times reports.
"In our view, the government and monetary authority must point in the same direction and walk in the same direction. As we take steps on the fiscal side, RBI should take steps on the monetary side," Chidambaram, 67, said in his first exclusive interview since returning to the finance ministry.
RBI held interest rates stable at 8 per cent in its mid-quarter review of monetary policy on September 17, even as the government announced a dramatic series of reforms on September 13-14.
The MP from Sivaganga, Tamil Nadu, is front and centre of the drive by the Sonia Gandhi-led Congress party to recapture the initiative and return to power in the general elections due in 2014.
The core of the strategy, many analysts say, is to revive economic growth, so as to generate resources for welfare schemes such as NREGA and the proposed Food Security Bill. Key to this approach is reviving investor confidence, which the Manmohan Singh-led administration has attempted to do by pushing through economic reforms such as allowing foreign supermarkets to enter India.
Chidambaram did not give details of the Shome committee report delivered to him on Monday but ET Now said the final version was similar to a draft that recommended watering down some rules and deferring implementation for three years.
"We will examine the report in the next 10 days and the final GAAR rules may come out in 10 days after that," Chidambaram told reporters, adding that the income tax law may have to be modified to meet the panel's recommendations.
On Monday, panel chief Parthasarathi Shome also gave the finance minister a draft report on the issue of retrospectively taxing overseas deals involving local assets. Chidambaram said the draft could be made public in 10 days.
In a move seen as targeting Vodafone, India passed a law in May to seek taxes from such deals.
The law followed a Supreme Court ruling that said Vodafone, the largest overseas corporate investor in India, did not have to pay tax in on its $11 billion deal to enter the country.
Government had sought $2.2 billion from London-listed Vodafone in tax after its purchase of Indian assets from Hong Kong-listed Hutchinson Whampoa Ltd. Vodafone said the deal was between two overseas entities, and India had no such right.
FII inflows are expected to get stronger in the second half of this fiscal at $11.2 billion on account of leading FIIs started looking at India as a good long-term investment destination, Centre for Monitoring Indian Economy (CMIE) said in its monthly review.
"FII inflows are expected to get stronger in H2FY13 at $11.2 billion as large FIIs like JP Morgan, Morgan Stanley and Deutsche Bank have started looking at India as a good long-term investment destination," CMIE said.
The unveiling of a fresh package by the European Central Bank in September 2012 for easing the European debt crisis is also expected to help reduce global risk aversion. "We expect net FII inflow in FY 13 to be around $14.7 billion," the economic think-tank said.
The FDI inflows during the year are also expected to remain healthy at $20.8 billion.
CMIE expect the situation to improve going forward. Current account deficit is expected to reduce a bit in the remaining quarters of 2012-13 and capital inflows are expected to pick up. A major improvement is expected to be seen in FII inflows.
"We expect India to see net FII inflows of $5.4 billion in the June 2012 quarter. As per the Sebi data, FIIs have already invested $4.4 billion into India during July-August 2012," CMIE said.
The reduction in global risk aversion following the announcement of new measures by the ECB, near zero interest rate regime in the west and high interest rates prevailing in India are expected to lead to an increase in external commercial borrowings to $11.4 billion in FY 13 from $10.3 billion in FY 12.
We expect the net inflows of NRI deposits to increase further to $12.4 billion from an all-time high of $11.9 billion in FY12. With zero interest rates prevailing in the US and Europe, Indians abroad are expected to invest more aggressively in NRI deposits, it said.
The rupee rose for a third consecutive session on Monday to hit a new five-month high as hopes for an improving economy, and fiscal and economic reforms from the government, continue to spur inflows from foreign funds, while exporters sold dollars.
Overseas investors have poured in $3.7 billion in Indian equities and debt in September, primarily driven by government action including raising subsidised diesel prices and opening up sectors to foreign direct investment.
India's current account deficit for the April-June quarter narrowed from a record 4.5 percent in the earlier quarter, turning the balance of payments into a slight surplus, data late on Friday showed.
"The rupee gained on selling from exporters and on the weak USD. It is likely to tread with gains on improved outlook of our economy," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.
The partially convertible rupee closed at 52.40/41 from Friday's close of 52.85/86. It rose to an intraday high of 52.40, its highest since April 23.
The rupee's gains on Monday came despite recent falls in the euro given uncertainty about whether Spain would request a bailout, although the currency recovered somewhat by European trade.
Under fresh attack from Mamata Banerjee on FDI in multi-brand retail, the Congress on Monday said the Trinamool Congress chief should “evolve from a street fighter to a statesman”.
“There comes a time in the life of every political party and politician when you have to evolve from an agitator to an administrator...from a street fighter to a statesman. These are personal decisions and a matter of self introspection. We want to leave to her only this very small suggestion,” party spokesperson Manish Tewari told reporters in New Delhi.
Mr. Tewari said the Congress has “great personal regard” for the West Bengal Chief Minister and the political struggle she had waged.
The Congress spokesperson was reacting to questions on Ms. Banerjee’s agitation against FDI in retail and price rise in the national capital during which she also indicated that her party may bring a ‘no-confidence motion’ against the government in the next session of Parliament.
Government is in majority and has full authority to take decisions, Congress on Monday said downplaying DMK's announcement that it would back any opposition-sponsored resolution in Parliament against allowing FDI in multi-brand retail.
"Government is not in minority. If some of our partners have concerns, we will continue to provide them the empirical evidence to allay their apprehensions. Same cycle was witnessed during the Indo-US nuclear deal", party spokesman Manish Tewari told reporters in reply to a volley of questions on the issue.
Making it clear that the government has full authority to take decisions, Tewari said "at times when you break from the past, it is wrenching for some people."
Dubbing as "false propaganda" that FDI is detrimental to the interest of domestic business, he said the Priniple Secretary to Atal Behari Vajpayee, the late Brajesh Mishra, had also backed the nuclear deal signed by the UPA government.
He insisted that if India has to grow and reap the benefits of demographic dividend, decisions like FDI in retail were needed in larger and long-term interests of the country.
Tewari also cited the example of China to drive home the point that FDI in retail was a win-win situation for all concerned.
He claimed that since Beijing allowed 100 per cent FDI in retail in 1996, it has witnessed the setting up of 600 hyper markets and the retail shops have increased from 19 lakh to 25 lakh giving boost to employment. Similar is the experience in countries like Brazil, Russia, Indonesia and Chile.
Tewari's comments came hours after DMK, the second largest constituent of UPA, e government, saying it would back any opposition-sponsored resolution in Parliament against allowing FDI in retail even as two MPs from Jharkand withdrew support.
A senior Congress leader, who declined to be identified, said the stands taken by various political parties on issues like FDI at a time of perceived instability were essentially a posturings and not real threats.
Congress' reaction also came on a day when it came under renewed attack from Mamata Banerjee on FDI in retail and price rise. The West Bengal Chief Minister addressed a rally in the national capital on the issue, during which she indicated that her party may bring a 'no-confidence motion' against it in the next session of Parliament.
BJP leader L K Advani today cited letters from traders' bodies to allege that Prime Minister Manmohan Singh has opposed FDI in multi-brand retail when he was the Leader of the Opposition in Rajya Sabha in 2002 on the ground that it would destroy employment.
In his latest blog posting, Advani said Singh had written a letter to the Federation of Maharashtra Traders on December 21, 2002 stating that the issue of FDI in multi-brand retail had been raised in the Rajya Sabha two days earlier.
"The Finance Minister gave an assurance," Dr. Manmohan Singh said approvingly, 'that government had no proposal to invite Foreign Direct Investment in Retail Trade'," Advani said, quoting from the letter.
BJP has charged that Singh and Congress were strongly opposed to FDI in multi-brand retail but have now done a U-turn on the issue under US pressure.
Advani also quoted from another letter, written by C T Shanghvi, Chairman of the Foreign Trade Committee of the Federation of Associations of Maharashtra to Singh to press home his allegation.
"Even before we made our detailed submissions, you had categorically stated that 'we should not permit Foreign Direct Investment in Retail Trade'. You had further mentioned that India does not require this kind of reform which would, rather than creating employment, destroy employment," the letter states.
Prime Minister Singh has come under direct attack of BJP on FDI in multi-brand retail issue. The main Opposition has alleged he is more concerned about the interest of multinationals like Walmart, maintaining that this company is not welcome even in some parts of the US.
"In view of the seriousness of this issue from the overall national angle, you (Singh) had raised the subject in the Rajya Sabha on December 18/19, 2002 and had obtained an assurance from the then Finance Minister that there was no proposal before the government for permitting FDI in retail trade," Advani said quoting from Shanghvi's letter to Singh.
At a protest rally at Jantar Mantar here, which was attended by NDA convenor Sharad Yadav, Ms. Banerjee launched an all-out attack against the Congress-led UPA government.
The Congress spokesperson, however, made light of her opposition to FDI and the hike in diesel prices alleging the West Bengal Chief Minister makes one statement in Delhi and says something else in Kolkata. “She (Banerjee) is opposing FDI and diesel hike in New Delhi but in West Bengal it is her government which had increased the power tariff,” Mr. Tewari said.
At a protest rally at Jantar Mantar in New Delhi, which was attended by NDA convenor Sharad Yadav, Banerjee said that she had "heard" that the general elections could be advanced and held in March next year.
"We also don't want this government. If need be, we are ready for bringing a no-confidence motion against this government," the West Bengal Chief Minister said while launching an all-out attack on the Congress-led UPA government. Trinamool Congress, which has withdrawn support to the government, has 19 MPs in Lok Sabha.
Banerjee, whose party organised the protest against FDI in retail, diesel price hike and LPG cap, said she could also bring a resolution against these decisions.
"I have heard that elections will happen in March. I am ready for a resolution," she said.
She also appealed to other political parties not to support the government and asked them to support her party's resolution against the recent decisions on FDI and other issues.
"I am ready to work with other parties to bring a resolution against the government in the next session of Parliament... I would request other political parties not to support this government," she said.
She said as part of its nation-wide programme, TMC will organise such dharnas at different places across the country.
Terming the government as "vindictive", Banerjee accused it of misusing CBI to target its opponents.
"I want to caution everyone here. The central government is very vindictive. It will do so many things against us. If people protest, they use CBI to threaten them," she said.
"I am not afraid of anything. I am not afraid of going to jail or dying. I have faced bullets but even then I work on roads and in the sun among the common people," she said.
Taking a jibe at the central government, she said, "Why are you so angry if I have come to Delhi? Is Delhi out of India? If you are so angry, we will bring ice next time. But that too will be for common man only."
She claimed that the decision to implement FDI in multi-brand retail has been taken only to benefit American multinational retail corporation such as Walmart.
"In the U,S it is mandatory for Walmart to do 70 per cent procurement from local companies. But our government even waived off the clause for 30 per cent local procurement. It is only to benefit the companies like Walmart," she said.
She also asked the retailers to stage protests in the country and ensure that the FDI in retail is not implemented.
The TMC chief also spoke against the government's decision to make mandatory the installation of digital set-top boxes for TV viewing in the metros.
"What was the need for this decision. Don't they (government) want the poor people to watch cable TV," Mamata asked.
Countering Mamata Banerjee's rally in Delhi today, the West Bengal Congress on Monday warned her not to 'misguide' the people on FDI in retail and threatened to call a bandh in the state if its entry was resisted.
"We may be forced to call a bandh in the state if the Trinamool Congress government dares to resist FDI entry in West Bengal. The chief minister should stop misguiding the people on FDI in retail," WBPCC President Pradip Bhattacharya told a rally at Hazra, close to the Trinamool Congress chief's residence.
"People of Bengal will not forgive Mamata Banerjee if she obstructs entry of FDI in retail in the state. I hope she will not make such a mistake since FDI in retail is essential to boost our national economy," Bhattacharya told party rallyists who marched from Indira Gandhi's statue on the Maidan.
"It is a wrong notion, being deliberately touted to misdirect poor farmers, retailers and traders that FDI in retail would encroach on their livelihood," the PCC chief said.
Bhattacharya demanded that the the chief minister submit specific evidence about retail traders being affected by functioning of major domestic retailers.
"She has no authority to misguide the people and hurl abuses against the Congress-led UPA government," he said.
The WBPCC, he said, would call for a bigger rally shortly to project forcefully that FDI was required to boost the country's economy.
Bhattacharya and other PCC leaders, including Deepa Dasmunshi, also questioned the Trinamool Congress chief's 'closeness' with BJP and NDA leaders in opposing FDI.
In the midst of his speech, some party workers burnt an effigy of the chief minister prompting Bhattacharya to ask them not to do so.
"It is not Congress culture and you should not do it here," the PCC president said.
Deepa Dasmunshi, Banerjee's bete noire, alleged that Congress workers began to be assaulted the day the Trinamool Congress withdrew support to the UPA government.
"We ask Mamata Banerjee not to belittle Congress and consider it a weak political party," she warned.
Criticising the chief minister for mimicking the prime minister on FDI during an interview to a TV channel, Dasmunshi said "We want an answer from you why there is no investment in the state and why unemployment is mounting by leaps and bounds?"
Party MP A H Khan Chowdhury, said that there was 'maximum' FDI in China, he said "We find no logic why there is so much resistance by Trinamool Congress and others?
"FDI is essential for the economic survival of the country, particularly in the retail trade where poor farmers are affected by middlemen," he said.
Party leader Abdul Manan, alleged that the police had tried to prevent the rally at Hazra initially.
"The Trinamool Congress government sought to disallow our meeting, but later relented. This is not a good sign. Delhi police had permitted Mamata Banerjee's rally at Jantar Mantar. If such a discriminatory attitude is followed in future, Congress will be forced to take to the streets to protest," Mannan said.
Palash Biswas
Mobile: 919903717833
Skype ID: palash.biswas44
Email: palashbiswaskl@gmail.com
Accusing the central government of indulging in corrupt activities,Mamata Banerjee declared, "It was our duty to save the government. But the bigger duty is to save the country...We cannot be with a corrupt government."She also questioned the method of functioning of the central government. Attacking the government on the FDI in retail and price rise, Trinamool Congress chief Mamata Banerjee today indicated that her party may bring a 'no-confidence motion' against it in the next Parliament Session and appealed to various political parties to support it.Accusing the UPA government of acting against the interests of the common man, Banerjee said her party will campaign across the country from next month.As part of this plan, she announced that TMC will hold a 48-hour dharna on November 19 and 20 in Delhi. She, however, said later that since these dates coincided with the festival of 'Chhat Puja', she accordingly had decided to shift the proposed agitation to November 22 and 23.
No Indian politician match Mamata in street fight, mind you.Main opposition BJP fails to lead the nation just because it is committed to the reform agenda. But NDA convenor and JDU chief Sharad Yadav stood with Mamata which is the indication of imminent reshuffle in political equations.However,the Jantar Mantar Mamata act challenged the ruling hegemony most since free market economy introduced.The act ensured ouster of the left from future political equation of third front. Mamata just struck the bull`s eye and emerged as the leader of the people to lead from the front in resistance of reforms.Contrararily the left reduced itself into a regional outfit as it organised a CPIM rally in Kolkata just to oppose Mamata Banerjee and failed to address the burning questions!
Jharkhand Vikas Morcha (Prajatantric), which has two MPs in Lok Sabha, on Monday withdrew its support to the UPA government for its "anti-people policies".
The announcement of withdrawal of support was made by its Principal General Secretary Pradip Yadav and the party's Lok Sabha member Ajay Kumar at a joint press conference here.
Besides Kumar, party president and former chief minister Babulal Marandi is JVM's other MP. "We are withdrawing support to the UPA government for its anti-people policies. We will meet President Pranab Mukherjee and submit the letter of withdrawal soon," they said.
"Our party is against FDI in retail, hike in diesel price and cap on LPG cylinders," they said.
Worser development for Congress as the DMK president M. Karunanidhi said on Monday if the Opposition moved a resolution in Parliament against Foreign Direct Investment in multi-brand retail sector, the DMK would support it.
Asked about Prime Minister Manmohan Singh’s assertion that there was no question of going back on reforms, even though the DMK had expressed it objections, he said he could not take the Prime Minister’s statement as a challenge.
“We are keen on addressing the people’s problems and we hope the Prime Minister will consider our feelings,” he said.
But he sought to play down the question of forming a third front, saying the question should be addressed to those leaders who were trying to form it.
“I am not thinking about a third front and it is unfair to ask me to answer a question on that subject,” he added.
Mr Karunanidhi also declined to answer a question on the BJP’s campaign that the country would soon witness elections to the Lok Sabha, saying he was not interested in “astrological predictions.”
Mr Karunanidhi, however, said DMK is extending support to the Congress-led UPA at the Centre despite many differences, including one on allowing foreign direct investment in multi-brand retail, because it wants to prevent a “communal and reactionary” government from assuming office, party president M. Karunanidhi said on Monday.
Talking to reporters after a high-level executive committee meeting here, he also made it clear that differences on various issues would not come in the way of his party’s relationship with the Congress.
“The differences can be sorted out through talks. So, the differences will not affect our relationship with the Congress,” he said.
CPI(M) on Sunday threatened to stage country-wide protests over Centre's decision to allow FDI in multi-brand retail, with party leader Prakash Karat saying he agreed with Mamata Banerjee's statement on "UPA looting in the name of reforms".
"We will not allow FDI (in multi-brand retail) to come up in any state. We will stage protests across the country", CPI(M) General Secretaray Karat told reporters here at the sidelines of a function.
To a query on West Bengal Chief Minister Mamata Banerjee's criticism of the UPA government's economic policies alleging "looting is on in the name of aam admi and reforms", Karat said he agreed with what she had said.
"I agree with what Mamata Banerjee said about UPA looting in the name of reforms. That is what is happening in India," he said.
Banerjee had said in her post in social networking website Facebook that "Reforms are meant to usher development for the people. Nowadays, the trend is whenever any anti-people decision is taken, it is taken in the name of reforms."
The Government had on September 14 allowed 51% FDI in multi-brand retail but left it to the states to permit global retailers to open stores following which the Trinamool had withdrawn support to the government and will hold protest tomorrow in Delhi on the issue.
Seeking to punch holes in BJP’s opposition to allowing Foreign Direct Investment in multi-brand retail, Union Commerce Minister Anand Sharma on Monday said the NDA government had readied a Cabinet note favouring 100 per cent FDI in the sector.
Addressing a gathering of Congress supporters in New Delhi, Mr. Sharma lambasted the BJP for trying to “mislead” the country on the issue and asserted that UPA government had taken the decision with “conviction” and “clarity” and there will not be any rethink on it.
“When it (BJP) was in power, a cabinet note was prepared. I had urged repeatedly that let the Parliament function. I would have tabled the Cabinet note seeking to allow 100 per cent FDI in retail,” Mr. Sharma said, attacking the BJP on the issue.
To counter the opposition parties, the Congress will organise a “big rally” at Ramlila Maidan here on October 28 which will be addressed by Prime Minister Manmohan Singh, party president Sonia Gandhi besides other senior leaders.
Mr. Sharma said government has taken the decision to allow 51 per cent FDI in multi-brand retail considering the economic fundamentals and ground realities of the country and BJP’s opposition to it reflected the party’s “hollowness”.
“We have framed the policy considering the ground realities and the social and economic disparities in the country,” he said adding, it is people of India who have approved the policy and it has not been brought in under the influence of any other country.
Mr. Sharma was addressing a gathering at Chief Minister Sheila Dikshit’s residence, which was organised to educate party workers on the issue.
Meanwhile, Indian shares closed at a more than 14-month high Monday, led by gains in software stocks ahead of quarterly results, with Infosys to announce its second-quarter figures on Oct. 12.
India's manufacturing activity growth in September held steady compared with August, supported by a pick up in export orders and output, a survey of businesses in India showed on Monday, but an increase in inventories could hurt growth in the future.The HSBC manufacturing purchasing managers' index (PMI), which gauges the business activity of India's factories but not its utilities, held steady at 52.8 in September from 52.8 in August, which was a nine-month low.Still, the index has remained above 50, which divides growth and contraction, for more than three years.Measures by the U.S. Federal Reserve and the European Central Bank to resuscitate their economies pushed foreign demand for Indian goods higher.
The government could amend controversial rules on tax avoidance within 20 days, the finance minister said on Monday, potentially ending months of uncertainty after the prime minister ordered a panel to clarify the tax proposals that had hurt investor confidence.The finalized General Anti-Avoidance Rules (GAAR), which would target companies and investors routing money through tax havens, are expected to be softer on investors than originally proposed in the budget.The government's moves to toughen tax collection had triggered an outcry from global industry groups and it was blamed for a drop off in investment flows into India. In response, Prime Minister Manmohan Singh set up the Shome committee to look at ways of addressing concerns that the new laws were arbitrary.
Finance Minister P Chidambaram wants the Reserve Bank to "walk in the same direction" as the government by cutting interest rates in response to sweeping reforms to rules governing foreign investment and politically-difficult cuts in fuel subsidies.Economic Times reports.
"In our view, the government and monetary authority must point in the same direction and walk in the same direction. As we take steps on the fiscal side, RBI should take steps on the monetary side," Chidambaram, 67, said in his first exclusive interview since returning to the finance ministry.
RBI held interest rates stable at 8 per cent in its mid-quarter review of monetary policy on September 17, even as the government announced a dramatic series of reforms on September 13-14.
The MP from Sivaganga, Tamil Nadu, is front and centre of the drive by the Sonia Gandhi-led Congress party to recapture the initiative and return to power in the general elections due in 2014.
The core of the strategy, many analysts say, is to revive economic growth, so as to generate resources for welfare schemes such as NREGA and the proposed Food Security Bill. Key to this approach is reviving investor confidence, which the Manmohan Singh-led administration has attempted to do by pushing through economic reforms such as allowing foreign supermarkets to enter India.
Chidambaram did not give details of the Shome committee report delivered to him on Monday but ET Now said the final version was similar to a draft that recommended watering down some rules and deferring implementation for three years.
"We will examine the report in the next 10 days and the final GAAR rules may come out in 10 days after that," Chidambaram told reporters, adding that the income tax law may have to be modified to meet the panel's recommendations.
On Monday, panel chief Parthasarathi Shome also gave the finance minister a draft report on the issue of retrospectively taxing overseas deals involving local assets. Chidambaram said the draft could be made public in 10 days.
In a move seen as targeting Vodafone, India passed a law in May to seek taxes from such deals.
The law followed a Supreme Court ruling that said Vodafone, the largest overseas corporate investor in India, did not have to pay tax in on its $11 billion deal to enter the country.
Government had sought $2.2 billion from London-listed Vodafone in tax after its purchase of Indian assets from Hong Kong-listed Hutchinson Whampoa Ltd. Vodafone said the deal was between two overseas entities, and India had no such right.
FII inflows are expected to get stronger in the second half of this fiscal at $11.2 billion on account of leading FIIs started looking at India as a good long-term investment destination, Centre for Monitoring Indian Economy (CMIE) said in its monthly review.
"FII inflows are expected to get stronger in H2FY13 at $11.2 billion as large FIIs like JP Morgan, Morgan Stanley and Deutsche Bank have started looking at India as a good long-term investment destination," CMIE said.
The unveiling of a fresh package by the European Central Bank in September 2012 for easing the European debt crisis is also expected to help reduce global risk aversion. "We expect net FII inflow in FY 13 to be around $14.7 billion," the economic think-tank said.
The FDI inflows during the year are also expected to remain healthy at $20.8 billion.
CMIE expect the situation to improve going forward. Current account deficit is expected to reduce a bit in the remaining quarters of 2012-13 and capital inflows are expected to pick up. A major improvement is expected to be seen in FII inflows.
"We expect India to see net FII inflows of $5.4 billion in the June 2012 quarter. As per the Sebi data, FIIs have already invested $4.4 billion into India during July-August 2012," CMIE said.
The reduction in global risk aversion following the announcement of new measures by the ECB, near zero interest rate regime in the west and high interest rates prevailing in India are expected to lead to an increase in external commercial borrowings to $11.4 billion in FY 13 from $10.3 billion in FY 12.
We expect the net inflows of NRI deposits to increase further to $12.4 billion from an all-time high of $11.9 billion in FY12. With zero interest rates prevailing in the US and Europe, Indians abroad are expected to invest more aggressively in NRI deposits, it said.
The rupee rose for a third consecutive session on Monday to hit a new five-month high as hopes for an improving economy, and fiscal and economic reforms from the government, continue to spur inflows from foreign funds, while exporters sold dollars.
Overseas investors have poured in $3.7 billion in Indian equities and debt in September, primarily driven by government action including raising subsidised diesel prices and opening up sectors to foreign direct investment.
India's current account deficit for the April-June quarter narrowed from a record 4.5 percent in the earlier quarter, turning the balance of payments into a slight surplus, data late on Friday showed.
"The rupee gained on selling from exporters and on the weak USD. It is likely to tread with gains on improved outlook of our economy," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.
The partially convertible rupee closed at 52.40/41 from Friday's close of 52.85/86. It rose to an intraday high of 52.40, its highest since April 23.
The rupee's gains on Monday came despite recent falls in the euro given uncertainty about whether Spain would request a bailout, although the currency recovered somewhat by European trade.
Under fresh attack from Mamata Banerjee on FDI in multi-brand retail, the Congress on Monday said the Trinamool Congress chief should “evolve from a street fighter to a statesman”.
“There comes a time in the life of every political party and politician when you have to evolve from an agitator to an administrator...from a street fighter to a statesman. These are personal decisions and a matter of self introspection. We want to leave to her only this very small suggestion,” party spokesperson Manish Tewari told reporters in New Delhi.
Mr. Tewari said the Congress has “great personal regard” for the West Bengal Chief Minister and the political struggle she had waged.
The Congress spokesperson was reacting to questions on Ms. Banerjee’s agitation against FDI in retail and price rise in the national capital during which she also indicated that her party may bring a ‘no-confidence motion’ against the government in the next session of Parliament.
Government is in majority and has full authority to take decisions, Congress on Monday said downplaying DMK's announcement that it would back any opposition-sponsored resolution in Parliament against allowing FDI in multi-brand retail.
"Government is not in minority. If some of our partners have concerns, we will continue to provide them the empirical evidence to allay their apprehensions. Same cycle was witnessed during the Indo-US nuclear deal", party spokesman Manish Tewari told reporters in reply to a volley of questions on the issue.
Making it clear that the government has full authority to take decisions, Tewari said "at times when you break from the past, it is wrenching for some people."
Dubbing as "false propaganda" that FDI is detrimental to the interest of domestic business, he said the Priniple Secretary to Atal Behari Vajpayee, the late Brajesh Mishra, had also backed the nuclear deal signed by the UPA government.
He insisted that if India has to grow and reap the benefits of demographic dividend, decisions like FDI in retail were needed in larger and long-term interests of the country.
Tewari also cited the example of China to drive home the point that FDI in retail was a win-win situation for all concerned.
He claimed that since Beijing allowed 100 per cent FDI in retail in 1996, it has witnessed the setting up of 600 hyper markets and the retail shops have increased from 19 lakh to 25 lakh giving boost to employment. Similar is the experience in countries like Brazil, Russia, Indonesia and Chile.
Tewari's comments came hours after DMK, the second largest constituent of UPA, e government, saying it would back any opposition-sponsored resolution in Parliament against allowing FDI in retail even as two MPs from Jharkand withdrew support.
A senior Congress leader, who declined to be identified, said the stands taken by various political parties on issues like FDI at a time of perceived instability were essentially a posturings and not real threats.
Congress' reaction also came on a day when it came under renewed attack from Mamata Banerjee on FDI in retail and price rise. The West Bengal Chief Minister addressed a rally in the national capital on the issue, during which she indicated that her party may bring a 'no-confidence motion' against it in the next session of Parliament.
BJP leader L K Advani today cited letters from traders' bodies to allege that Prime Minister Manmohan Singh has opposed FDI in multi-brand retail when he was the Leader of the Opposition in Rajya Sabha in 2002 on the ground that it would destroy employment.
In his latest blog posting, Advani said Singh had written a letter to the Federation of Maharashtra Traders on December 21, 2002 stating that the issue of FDI in multi-brand retail had been raised in the Rajya Sabha two days earlier.
"The Finance Minister gave an assurance," Dr. Manmohan Singh said approvingly, 'that government had no proposal to invite Foreign Direct Investment in Retail Trade'," Advani said, quoting from the letter.
BJP has charged that Singh and Congress were strongly opposed to FDI in multi-brand retail but have now done a U-turn on the issue under US pressure.
Advani also quoted from another letter, written by C T Shanghvi, Chairman of the Foreign Trade Committee of the Federation of Associations of Maharashtra to Singh to press home his allegation.
"Even before we made our detailed submissions, you had categorically stated that 'we should not permit Foreign Direct Investment in Retail Trade'. You had further mentioned that India does not require this kind of reform which would, rather than creating employment, destroy employment," the letter states.
Prime Minister Singh has come under direct attack of BJP on FDI in multi-brand retail issue. The main Opposition has alleged he is more concerned about the interest of multinationals like Walmart, maintaining that this company is not welcome even in some parts of the US.
"In view of the seriousness of this issue from the overall national angle, you (Singh) had raised the subject in the Rajya Sabha on December 18/19, 2002 and had obtained an assurance from the then Finance Minister that there was no proposal before the government for permitting FDI in retail trade," Advani said quoting from Shanghvi's letter to Singh.
At a protest rally at Jantar Mantar here, which was attended by NDA convenor Sharad Yadav, Ms. Banerjee launched an all-out attack against the Congress-led UPA government.
The Congress spokesperson, however, made light of her opposition to FDI and the hike in diesel prices alleging the West Bengal Chief Minister makes one statement in Delhi and says something else in Kolkata. “She (Banerjee) is opposing FDI and diesel hike in New Delhi but in West Bengal it is her government which had increased the power tariff,” Mr. Tewari said.
At a protest rally at Jantar Mantar in New Delhi, which was attended by NDA convenor Sharad Yadav, Banerjee said that she had "heard" that the general elections could be advanced and held in March next year.
"We also don't want this government. If need be, we are ready for bringing a no-confidence motion against this government," the West Bengal Chief Minister said while launching an all-out attack on the Congress-led UPA government. Trinamool Congress, which has withdrawn support to the government, has 19 MPs in Lok Sabha.
Banerjee, whose party organised the protest against FDI in retail, diesel price hike and LPG cap, said she could also bring a resolution against these decisions.
"I have heard that elections will happen in March. I am ready for a resolution," she said.
She also appealed to other political parties not to support the government and asked them to support her party's resolution against the recent decisions on FDI and other issues.
"I am ready to work with other parties to bring a resolution against the government in the next session of Parliament... I would request other political parties not to support this government," she said.
She said as part of its nation-wide programme, TMC will organise such dharnas at different places across the country.
Terming the government as "vindictive", Banerjee accused it of misusing CBI to target its opponents.
"I want to caution everyone here. The central government is very vindictive. It will do so many things against us. If people protest, they use CBI to threaten them," she said.
"I am not afraid of anything. I am not afraid of going to jail or dying. I have faced bullets but even then I work on roads and in the sun among the common people," she said.
Taking a jibe at the central government, she said, "Why are you so angry if I have come to Delhi? Is Delhi out of India? If you are so angry, we will bring ice next time. But that too will be for common man only."
She claimed that the decision to implement FDI in multi-brand retail has been taken only to benefit American multinational retail corporation such as Walmart.
"In the U,S it is mandatory for Walmart to do 70 per cent procurement from local companies. But our government even waived off the clause for 30 per cent local procurement. It is only to benefit the companies like Walmart," she said.
She also asked the retailers to stage protests in the country and ensure that the FDI in retail is not implemented.
The TMC chief also spoke against the government's decision to make mandatory the installation of digital set-top boxes for TV viewing in the metros.
"What was the need for this decision. Don't they (government) want the poor people to watch cable TV," Mamata asked.
Countering Mamata Banerjee's rally in Delhi today, the West Bengal Congress on Monday warned her not to 'misguide' the people on FDI in retail and threatened to call a bandh in the state if its entry was resisted.
"We may be forced to call a bandh in the state if the Trinamool Congress government dares to resist FDI entry in West Bengal. The chief minister should stop misguiding the people on FDI in retail," WBPCC President Pradip Bhattacharya told a rally at Hazra, close to the Trinamool Congress chief's residence.
"People of Bengal will not forgive Mamata Banerjee if she obstructs entry of FDI in retail in the state. I hope she will not make such a mistake since FDI in retail is essential to boost our national economy," Bhattacharya told party rallyists who marched from Indira Gandhi's statue on the Maidan.
"It is a wrong notion, being deliberately touted to misdirect poor farmers, retailers and traders that FDI in retail would encroach on their livelihood," the PCC chief said.
Bhattacharya demanded that the the chief minister submit specific evidence about retail traders being affected by functioning of major domestic retailers.
"She has no authority to misguide the people and hurl abuses against the Congress-led UPA government," he said.
The WBPCC, he said, would call for a bigger rally shortly to project forcefully that FDI was required to boost the country's economy.
Bhattacharya and other PCC leaders, including Deepa Dasmunshi, also questioned the Trinamool Congress chief's 'closeness' with BJP and NDA leaders in opposing FDI.
In the midst of his speech, some party workers burnt an effigy of the chief minister prompting Bhattacharya to ask them not to do so.
"It is not Congress culture and you should not do it here," the PCC president said.
Deepa Dasmunshi, Banerjee's bete noire, alleged that Congress workers began to be assaulted the day the Trinamool Congress withdrew support to the UPA government.
"We ask Mamata Banerjee not to belittle Congress and consider it a weak political party," she warned.
Criticising the chief minister for mimicking the prime minister on FDI during an interview to a TV channel, Dasmunshi said "We want an answer from you why there is no investment in the state and why unemployment is mounting by leaps and bounds?"
Party MP A H Khan Chowdhury, said that there was 'maximum' FDI in China, he said "We find no logic why there is so much resistance by Trinamool Congress and others?
"FDI is essential for the economic survival of the country, particularly in the retail trade where poor farmers are affected by middlemen," he said.
Party leader Abdul Manan, alleged that the police had tried to prevent the rally at Hazra initially.
"The Trinamool Congress government sought to disallow our meeting, but later relented. This is not a good sign. Delhi police had permitted Mamata Banerjee's rally at Jantar Mantar. If such a discriminatory attitude is followed in future, Congress will be forced to take to the streets to protest," Mannan said.
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