CWC backs PM,PC on reforms push

Sonia says FDI decision necessary,govt stable

Prime Minister Manmohan Singh and Finance Minister P Chidambaram on Tuesday got unequivocal endorsement of their latest economic reforms from the Congress Working Committee (CWC),with Congress president Sonia Gandhi saying they were very necessary and assuring that there is no threat to the governments stability despite the Trinamool Congress pulling out of the ruling coalition.

Twenty-one out of 30 members present spoke and all of them endorsed the decision to allow FDI in multi-brand retail and diesel price hike. While some CWC members did make a point that public opinion should have been mobilised in favour of these reforms and opined that the party and the Chief Ministers of Congress-ruled states should have been taken into confidence about the cap on subsidised LPG cylinders,sources said these views were meant only as suggestions for future.

In February 2007,Sonia had raised a red flag on FDI in retail sector,writing to the Prime Minister about the desirability to first study the impact of trans-national supermarkets on the livelihood of those engaged in small scale operations. The fact that she led the CWC to strongly back on Tuesday the governments decision to allow FDI in multi-brand retail showed a definite realisation in the ruling party about the urgency to push the economic reforms process.

Story continues below this ad

Chidambarams detailed explanation of the current state of economy and of the compulsions that forced the governments hands was said to have won over usual naysayers. The Finance Minister was learnt to have explained how the 2008 sub prime crisis in the US was followed by economic crises in countries like Greece and Spain,and if India did not act swiftly to arrest the depreciation of rupee against the dollar,how it would endanger the economy. He said unless the economy is strong,it would be difficult to sustain flagship programmes targeting the poor.

He briefed the CWC on the three-fold action plan of the government,including raising production,attracting investments and cutting subsidies. The Finance Ministers arguments were very convincing and therefore,none of us had any reason not to support the reforms process, said a CWC member.

The Prime Minister told the CWC that he had to address the nation because the government had answers in the coal allocation controversy but the Opposition parties did not allow him to speak in Parliament. As CWC members felt there was a need to dispel apprehension about economic reforms it was decided to reach out to the people. To this end,the Congress leadership was said to be exploring the option of holding rallies at districts and state levels.

In her opening remarks at the CWC,Sonia was said to have stated that though TMC had withdrawn support,two other parties (SP and BSP) were supporting it from outside. Government is stable. There is no threat to the government, AICC general secretary Janardan Dwivedi quoted the Congress president as saying. She also criticised the BJP for its negative politics.