What innumerable allegations by Comptroller of Auditor General's reports could not do will one reform policy do the necessary damage to the UPA. The proposed 51 percent foreign direct investment (FDI) proposal into the retail segment, FDI in retail is supposed to give the necessary impetus for a robust economy. This is the statement given by Congress stalwarts but on the contrary many UPA members join the oppositions crying foul with the policy.
Trinamool Congress (TMC) led by Mamta Banerjee has sent in it's resent on the issue. And as per speculations the central Ministers of the party are to pen down their resignations today. That simply means that the Didi is pulling the last string for the mighty crumble , by pulling out of the cabinet. As per news the TMC ministers will meet the Prime Minister Dr Manmohan Singh by 3 pm and submit their resignations. Then they will meet the President Pranab Mukherjee to announce the withdrawal of support to UPA.
Congress is dare faced with the sops it plans to trade to get the backing of the external regional heavyweights Mulayam Singh Yadav and Mayawati who are bound to provide external support. As per news the ruling party plans to roll back the fuel price by about 0.50 ps and also extend the domestic cylinder quota from six to nine. That should keep the supporters happy for the time being.
DMK another supporter from south is left with no option but support the Congress due to its (legally) cornered situation. Though the party voices against the policy, it will not formally withdraw, say sources. That gives enough courage to the ruling party to stay fit even in storms till the next general elections in 2014.
On the other hand the Finance Minister P Chidambaram made it very clear that the UPA will not roll back the development measures that it had announced. He also put a watch word that there is still more on the anvil. The buzz is that Congress top brass has sent out a word that it is time for tough decisions and everyone has fallen in line.
The opposition feel that this will be suicidal for the home based employment sector. They added that the decision to hike prices of diesel, LPG and allowing FDI in retail trade and the slew of measures announced shows their haste in fulfilling their agenda.
Leaving the political chaos behind the business circles seem to welcome the policy. And that shows up as the BSE Sensex extended gains this morning rising over 300 points to firmly trade above the key 18,500 mark while the broader Nifty advanced nearly 100 points to take out the 5,650 mark.
Hence battle lines have been drawn between the tough minded economists and the vote hungry politicians. The FDI in retail has been the burning issue as of now on the agenda. And we request you to contribute your comments of the issue. The best comment shall be complimented with a feedback from us. So let's see who is the best to decide what is best for the nation of billions. Be generous in expressing your views. (With inputs from internet-AW AarKay)