CPI-M opposes FDI in multi-brand retail

New Delhi, June 11 (IANS) The CPI-M Monday came out strongly against opening up the FDI in multi-brand retail as well as upping foreign direct investment (FDI) limits in banking and insurance sectors.

The party said it opposed "the moves to push through more neo-liberal measures", saying it were these measures, and not the lack of them, which had led to the present grim financial situation.

"The (party asks) all opposition parties to oppose legislations which seek to increase the FDI limit in banking and insurance sectors and (also) the Pension Bill, which is meant to privatize pension funds," it said in a statement.

The Communist Party of India-Marxist pointed out that GDP growth rate had declined to 6.5 percent in 2011-12 and there was a slowdown in industrial production.

The trade deficit was widening in the backdrop of slowdown in exports. The Indian rupee had depreciated to over Rs.55 a dollar. There was a sharp increase in external debt.

"The ruling establishment and the corporate media are portraying this deterioration as a failure to push through neo-liberal reforms. This is a travesty of facts," it said.

"On the contrary, like in the rest of the world, the worsening economic situation in India is a direct outcome of the pursuit of neo-liberal policies."

The CPI-M reiterated its opposition to the steep petrol price hike.

It said the reduction of the price by Rs.2 per litre "is totally inadequate since it is still higher by over Rs.5.50 a litre". It called for "a full rollback of the petrol price increase".

The statement also called for a through investigation by the Central Bureau of Investigation (CBI) into the allocation of coal blocks, which the Comptroller and Auditor General has found faulty.

"This has resulted in huge profits for the private parties and massive loss of revenue to the government," a party statement said.

The Central Vigilance Commissioner has referred the matter to the CBI for investigation. "The response of the Prime Minister's Office to the allegations on the allocations is not credible."