India strike over retail reforms

Written By Sepatu on Kamis, 20 September 2012 | 11.17

Opposition parties and trade unions in India are joining in one-day strike over the government's plan to open the retail sector to global supermarket chains and other reforms.

Early reports said that opposition workers had blocked railway tracks in Uttar Pradesh and Bihar states.

A key ally of the ruling coalition has pulled out of the government in protest at the plan.

Observers say the coalition's majority in parliament is not at immediate risk.

Delhi's plan is aimed at reviving a flagging economy, but small shops fear they will be put out of business.

The decision was one of several reforms announced by the government last week.

It also decided to allow foreign airlines to buy 49% stakes in local carriers, in the hope that this will boost the country's troubled aviation sector.

The government also announced a 14% rise in the price of diesel, which is heavily subsidised in India.

Angry

The Trinamool Congress party, a key ally of the ruling coalition, has said it would pull out of the government and that its six ministers would resign on Friday.

Thursday's nationwide strike, called by the main opposition Bharatiya Janata Party (BJP), its allies and Communist parties, is expected to shut down schools, businesses and public transport in many cities.

TV channels showed protests taking place in the cities of Patna, Allahabad and Varanasi in northern India.

Most businesses were shut in the eastern city of Calcutta and public transport was disrupted, reports said.

The Confederation of All India Traders said 50 million people were expected to participate in the protests, and that large demonstrations were planned in Delhi and other cities.

"Multinational companies will destroy the economic and social fabric of the country and will adversely impact traders, transporters, farmers and other sections of retail trade," Praveen Khandelwal, the head of the group, was quoted as saying by AFP news agency.

A BJP spokesperson said people were supporting the strike because they were "angry at the recent decisions of the government".

Under the government's proposal, global firms - such as Walmart and Tesco - will be able to buy up to a 51% stake in multi-brand retailers.

Multinational retailers already have outlets in India, but they deal with smaller retailers. This decision allows them to sell directly to Indian consumers.

Indian Prime Minister Manmohan Singh has said the reforms would "help strengthen our growth process and generate employment in these difficult times".

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20 Sep, 2012


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Source: http://www.bbc.co.uk/news/world-asia-india-19658146#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
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