Indian PM confident of any vote test

INDIA: India’s Prime Minister said Tuesday the government was confident of winning any test of strength in parliament over its controversial move to allow foreign supermarkets to operate in the country.

The decision, which has paralysed parliament since the start of the winter session last week, has been attacked by the opposition as a sellout to foreigners that will force family-owned stores to shut.

“We are confident of numbers,” said Prime Minister Manmohan Singh, indicating he believed that the government would win enough backing should a parliamentary vote be held on the issue. It was the first sign the government might be willing to accede to the opposition’s demand for such a vote in an effort to defuse the row.

The ruling coalition lost its majority in September when a regional ally exited to protest against the government’s decisions to widen foreign direct investment in the retail sector.

Opponents have branded the measure as “anti-poor” but the government says allowing foreign supermarkets will improve the country’s antiquated supply chain and create millions of jobs.

Singh’s push for pro-market reforms comes as the government faces a sharply slowing economy, a gaping fiscal deficit and high inflation, which has stoked pressure on the left-leaning alliance led by the Congress party.

The decision did not require a vote and has become law, but the government’s other proposals to open up the gigantic insurance and pensions markets will need parliamentary approval.

Singh called last week on all parties to let parliament function after the previous session was almost entirely lost due to protests, which have added to a growing national sense of political and economic malaise.

AFP