{Arun Jaitley**}
The BJP manifesto and foreign investment :
The BJP has released its manifesto yesterday. One of the most important challenges before the next government would be to revive the Indian economy. The UPA government inherited a 8.5% growth rate in the GDP. It will leave behind a 4.5% + growth rate. For revival of the economy and expansion of economic activities, investment is required. Investment has to be both domestic and foreign.
Foreign direct investment is an additionality of resource. In sectors such as infrastructure where domestic resource is inadequate, FDI can play important role. The FDI, however, has to be carefully permitted considering the requirement of each sector. While the BJP will encourage FDI in certain sectors, it is presently opposed to opening out of multi brand retail. Unorganized retail is a largest employer after agriculture. There are four crore small retail establishments in India which support almost 1/6th of India’s population. Multi brand retail by major international groups will displace mass retail jobs. It will hurt our manufacturing establishments since organized international retail sources products internationally. India can ill-afford foreign owned stores selling Chinese goods. The elimination of small retail establishments will also reduce consumer choices. Nowhere in the world have international retailer enriched farmers or producers. The benefits of elimination of middlemen will go entirely to the multi brand retailers.
In a town like Amritsar which is heavily dependent on trading, a few multi brand retail establishments can cause havoc to the trading community. I challenge the Congress Party for a debate on the impact that multi brand retailer will have on the trading community of Amritsar.
My interaction with the hotel industry :
Yesterday, I had structured interaction with all the hotel owners of Amritsar. The subject was expansion of tourism in Amritsar. I made the following suggestions to the hotel owners:-
Amritsar will always be a tourist hub. It has to upgrade the railway station, complete the road and highway development programme, and have more directly connected international flights. The monuments in and around the city need to be preserved. Additional tourism spots such as a visit to the Khalsa College, creation of food street, reasonable taxation on hotels, increasing the number of hotels and rooms available will also help the city in a big way. The tourism infrastructure and creation of other attractions such as amusement parks can ensure that a standard tourist visiting the Golden Temple stays in Amritsar for two nights instead of one. The tourism traffic to the city itself will be doubled. This alone will help the hoteliers, traders, transport providers, restaurants, Dhabas and all tourism attraction points. Amritsar needs to think out of the box.
Encl : Salient points of speech on 6th December 2012 on FDI in Retail Debate in Parliament.
FDI File.Docx.
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**Arun Jaitley Leader of Opposition (Rajya Sabha )
