Congressmen, communists welcome Sonia's protests on FDI

New Delhi -- Congress president Sonia Gandhi's advice to Prime Minister Manmohan Singh to be careful in opening up the retail sector to foreign direct investment (FDI) has made not only the government's communist partners happy, but also some in the Congress.

"It's a welcome move in the right direction," senior Congress MP P.J. Kurien said. Gandhi reportedly had written to the prime minister cautioning against allowing foreign retailers in the country, saying it would affect the domestic small players.

The United Progressive Alliance (UPA) chairperson's letter has put a question mark on what was seen as imminent entry of foreign retail giants like Wal-Mart and Tesco.

Kurien, who had earlier sent two notes to Gandhi on the issue, said: "FDI in the retail sector is detrimental to the interest of small traders, therefore it is not in the interest of the nation too."

"Small traders will be gobbled up as they are spread out across the country, and even in the villages. FDI in certain sectors is, however, welcome. We should be choosy," Kurien told IANS.

Kurien was not ready to admit that Gandhi's warning was because of the objections raised by the Communist Party of India-Marxist (CPI-M)-led Left Front to the issue.

"It's not that the Congress president came under pressure from the communists. She is now convinced of its (FDI in retail) dangers and she wanted to intervene at the right time," Kurien said.

But the communists are claiming credit for Gandhi's intervention in the matter.

"We have been consistently asking the government not to open the retail sector to FDI. We are happy that she has taken a stand now," said CPI-M politburo member S. Ramachandra Pillai.

Communist Party of India (CPI) leader D. Raja pointed out that the Congress leadership had come under pressure from its own cadres too.

"Since November 2005, we have been protesting the government's move to open up the retail sector. She (Sonia Gandhi) was present at the (Left-UPA) meeting when we expressed our protests. But the government went ahead with its plan to allow Wal-Mart."

"There can be a disconnect between Left and the government. But how can there be a disconnect between the Congress leadership and the government. She has come under tremendous pressure from her party men too (on the issue)," Raja added.

The CPI-M, CPI and two other Left parties support the Congress-led government from outside. The entry of foreign majors in retail has been a contentious issue with small traders and Left parties campaigning against it even as multi national companies like Wal-Mart, Carrefour and Tesco are keen to enter Indian markets.