India Inc fumes at holdback on FDI in retail

The government's decision to hold back FDI in retail may have bought peace with the Opposition and certain allies, but voices of disapproval have started coming in from India Inc.

Corporate India has given a thumbs down to the Manmohan Singh government for backing down on FDI in retail. Sources say global investors are frustrated by this policy paralysis

Confederation of Indian Industry President B Muthuraman said that FDI in retail would have helped India and also attract investment from abroad.

"Retail FDI would have sent a strong signal reforms are back. There is a lot that can be done to improve sentiments in India and to attract investments from abroad," he said.

India Inc, however, is hopeful that the government's decision has just put FDI in suspension.

Bharti Enterprises Vice Chairman and MD Rajan Bharti Mittal said that discussion on FDI in retail will not stop. He added that the government has taken an unfortunate decision.

"We are disappointed. it is an unfortunate decision which has taken place. But we are hopeful that it has gone into suspension. We are watching this space. We had discussions when the announcement came in. We'll again have conversations, to definitely see what is happening, I'm sure they are also watching this space," Mittal said.

Meanwhile, Finance Minister Pranab Mukherjee will address a meeting with the Congress Parliamentary Party to discuss the issue of FDI in retail. The meeting on Thursday comes after the government took a decision to holdback FDI in retail.

Facing pressure from not just the Opposition but also its key allies, the UPA 2 government took the decision to holdback FDI as it had also stalled the winter session of Parliament nine days.