BJP releases letter showing PM opposed FDI in 2002

New Delhi: In a fresh attack on the United Progressive Alliance (UPA) government, the Bharatiya Janata Party (BJP) on Thursday released a letter in which Prime Minister Manmohan Singh had in 2002 opposed foreign direct investment (FDI) in retail.

The letter was written by Singh in 2002 to the chairman of the foreign trade committee opposing foreign investments in retail.

This comes just days after the Manmohan Singh government announced pushed some bold reforms and cleared FDI in multi-brand retail, single-brand retail, aviation, broadcasting and power exchanges.

In multi-brand retail, the Cabinet allowed 51 per cent foreign direct investment. It had also approved the proposal of the Department of Industrial Policy and Promotion for amendment of the existing policy on FDI in single-brand product retail trading. The government permitted FDI, up to 100 per cent, in single brand product retail trading, subject to specified conditions.

While the steps taken by the government led to Trinamool Congerss chief Mamata Banerjee pulling out of the UPA, the BJP also opposed it and went on it say that it would scrap it if voted to power.

An announcement in this regard was made on Wednesday by BJP vice president Mukhtar Abbas Naqvi.

The BJP had also clarified that it was not a question of the quantum of FDI to be allowed and the party was fully against it. Party president Nitin Gadkari elaborated on the point in his inaugural address at the BJP's National Executive Meet in Surajkund.

The BJP insisted that it is not against reforms and is proud of its "record of governance, reforms, pro-people policies and equitable growth".

The party pointed out that there are several hurdles in the implementation of the UPA decision on FDI in multi-brand retail, saying India is a signatory to bilateral agreements with 82 countries where it cannot stop foreign multinationals from entering certain states if it is allowing domestic companies to set up shop.

It said the Kerala High Court verdict, which said FDI in multi-brand retail cannot be allowed, will also have to be respected. All the BJP and NDA ruled states are opposed to the policy.

(With Additional Inputs from PTI)