The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, Friday decided to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail. This followed the announcement Thursday of a hike in diesel price by Rs. five a litre and restricted availability of subsidised cooking gas cylinders per family to six per year. Government’s announcement of hike in diesel price has met with sharp reaction from all opposition parties. Even the allies of the UPA like DMK and Trinamool, too, have reacted very angrily to sudden hike. The government feels that it has become unavoidable to arrest the downward trend of the economy and the much unwanted decision of hiking the diesel price had to be taken. That this hike will adversely affect the consumers who are already reeling under escalation of prices of essential commodities is known to one and all. The Trinamool Congress chief has issued 72 hour ultimatum to the UPA government to withdraw the diesel as well as 51 per cent foreign direct investment (FDI) in multi-brand retail. Things are heading to a collusion in which the government and the opposition seem to be preparing to lock horns. We have recently seen the discomforting scene of a rather paralyzed parliament on Coalgate fiasco. The brewing crisis over the FDI and diesel hike pose serious challenge to the government which has not found it necessary to take the states on board in the matter of diesel price hike. The message seems to be that our economy is not stable and the government is eager to take even drastic measures to ensure that it is able to put a stop to recession much ahead of the impending general elections in the country. This is a crucial matter and both the ruling and opposition parties shall have to show patience and restraint and not allow emotions and cheap popularity to play with vital interests of our economy. Restraint on all sides is strongly recommended in this hour of trial.
Follow our WhatsApp channel