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UPA Government : Left’s opposition to FDI in retail
News Behind The News
 
October 31, 2005

The Left parties have returned to the UPA-Left Coordination Committee after a gap of four months. At the meeting held on Thursday, Oct. 27. both sides decided to sort out their differences on various issues. The Left parties submitted a note at the meeting conveying their opposition to foreign direct investment (FDI) in retail. The Government did not respond immediately, but agreed to study the note.



The UPA sought Left’s support for the Pensions Bill, but the Left leaders made no commitment. However, they said they are willing to consider the matter and will put forward suggestions for amendments in the Pensions Bill. Observers say that this is a softening of their earlier total opposition to reforms in the Pension sector.



The Left parties also submitted a note on Iran where they said India should not repeat its mistake of voting against Iran at the meeting of the International Atomic Energy Agency (IAEA). They said that if the issue comes up for voting at the next IAEA meeting on Nov. 24, India should stick to its position that the matter should be resolved through negotiations.



A crucial meeting of the CPI(M) politburo on October 25, two days ahead of the coordination committee meeting of the UPA, discussed enforcement of labour laws in the information technology (IT) and BPO sectors. The politburo later said that the IT industry can have strikes, but some “vital” functions will be spared.



CPI(M) general secretary Prakash Karat said, “If they have trade unions and the right to have collective bargaining, they will have a right to strike also.”



But he said there could be “certain services of continuous nature”, which could require to be “maintained” even during strikes because of their vital nature.



Opening a new front, the Left parties have asked the Commerce Ministry to withdraw the Government’s offer made on higher education at the WTO negotiations on services in August. The Government’s offer would have allowed foreign universities to open their branches in India in any stream after Government approval.



Virtually echoing the line taken by the swadeshi lobby in the Sangh Parivar, the Left warned that the entry of foreign universities will foster “cultural insensitivity” arguing that their curriculum would have a viewpoint different to the country’s stand on issues such as Kashmir and the freedom struggle.



The other fear, the Left says, is that by charging exorbitant fees, this would only add to the “urban elitist bias” as these would be thronged by children of the rich. Also it would result in poaching of the best teachers from IIMs and IITs.











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