Kaushik Basu bats for FDI in multi-brand retail

New Delhi: Batting for FDI in multi-brand retail, Chief Economic Advisor Kaushik Basu on Tuesday said foreign investment in the sector will benefit one and all in long term. "To me it is obvious that the (FDI in multi-brand retail) benefits will outstrip the costs. I think in the long term the benefits would trickle down across the board …," he said here.

Last week the government allowed 51 per cent FDI in the sensitive multi-brand retail, a decision which has created a political storm. Opposition parties led by the BJP and Left stuck to their stand in Parliament today and demanded a roll-back of the Cabinet decision to allow 51 per cent FDI in multi-brand retail.

Even UPA allies TMC and DMK, along with the SP and BSP, which lend outside support to the government, demanded that the decision should be revoked.

Both Houses were first adjourned as soon as they assembled at 1100 hrs and then again after they reassembled at noon as members from the BJP, TRS, Left and other parties trooped into the Well.

On economic growth, Basu said the relative rating of India has "actually improved" at a time when many countries across the globe have been downgraded. "These are very very tough times for the rest of the world," he added.