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Shopkeepers and traders went on a one-day strike as the main opposition party stepped up protests against plans to open the country’s retail sector to foreign chains.
The right-wing Bharatiya Janata Party (BJP) backed the shutdown, which closed commercial areas in the capital New Delhi and in other major cities but was only partially effective across the whole country.
Prime Minister Manmohan Singh’s government has been faced with widespread fury over its decision last week to allow supermarket giants such as Wal-Mart to own 51% of large “multi-brand” stores.
The arrival of international supermarkets could transform India’s retail sector and threaten the small, family-run stores where most people do their shopping.
“The government does not care about our interests. They are rolling out the red carpet for the multinationals,” said Dayal Singh, Delhi secretary of the All-India Traders Union.
He said more than 10,000 traders in New Delhi joined the protest to demand the Congress-led government withdraw the reforms.
Most of the markets and many shops in New Delhi and Kolkata were shut, with several parts of Mumbai also closed for business.
“We do not want foreign investment in retail. Why are Wal-Mart coming to foreign shores to sell their goods. Where will we go?” said Kishore Kaharawal, general secretary of the Indian Small Business and Trade Owners Association.
“The government needs to change its policies, otherwise foreign companies will rule here.”
Gearing up to face a likely vote on an adjournment motion, Singh yesterday girded up to amass the required numbers by talking to recalcitrant allies to get them on board, as the Congress said there would be no rollback of the government decision.
Yesterday he met with the Trinamool Congress and Dravida Munnettra Kazhagam (DMK) parties, key allies within his coalition government who have joined the opposition to oppose retail liberalisation.
There were indications the government might allow the opposition’s adjournment move to ensure that the two houses of parliament function from next week for the
remainder of the winter session.
Meanwhile the Congress yesterday said “there is no question of rollback” of the government’s decision.
“No question, at present, of rollback,” party spokesman Raashid Alvi told reporters.
Blaming the Bharatiya Janata Party (BJP), Left and some other parties for the stalemate in the house on the government’s decision, Alvi said members from opposition benches start raising a ruckus even before the presiding officers take their position.
Contending that FDI in retail was in the interest of the country, he hoped some solution will be found to the impasse on the issue in parliament. Alvi claimed that the BJP had also mooted the idea of FDI in retail in 2004 elections.
Lawmakers have reduced parliament to a deadlock over the issue, with noisy protests forcing constant adjournments since the FDI (foreign direct investment) changes were announced a week ago.