FDI optimism, Goldman Sachs upgrade buoy mkt sentiment
is principally the resolution on Thursday of the gridlock in Parliament over foreign direct investment (FDI) in retail, after the presiding officers of both Houses allowed discussion on the issue under rules that entail voting. This revived hopes that the government might be able to get parliamentary assent for at least some of the key reform Bills during this session.
After the impasse ended, the House started transacting business — the Lok Sabha later in the day approved a Bill expanding the definition of money laundering offences. With just 16 days remaining of the winter session, the government is expected to push the insurance and pension Bills meant to boost the financial sector and other economic and governance reforms that need legislative backing like the Direct Taxes Code, the land Bill and the lokpal Bill.
While the Lok Sabha will discuss retail FDI on December 4 and 5 followed by voting on the second day, the Rajya Sabha is yet to announce the schedule of the debate. Although the voting is only of symbolic value and cannot legally bar the government from going ahead with its decision to allow foreign retail biggies to pick up stakes of up to 51% in multi-brand retail operations, an Opposition win would still be deeply embarrassing for the ruling coalition. While the government is fairly comfortably placed in the Lower House, it is is a bit jittery over the numbers in the Upper House. In the Rajya Sabha, with an effective strength of 244, the UPA
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