ECONOMY: India government says FDI vote win a victory of reform

Indian Minister of Communications and Information Technology and Congress Party MP Kapil Sibal said democracy and reforms prevailed. Prakash Singh/AFP/Getty Images

“It was a contest between reform and retribution … ultimately reform and pragmatism have won. This decision, which has been endorsed by the Lok Sabha would ensure the economy is strengthened,” said Minister of State (Independent charge) for Information and Broadcasting Manish Tewari soon after the government won the vote on foreign investment in multi-brand retail.

Communications Minister Kapil Sibal said: “We are very happy, this is what vibrant democracy does. It was curious to find new definition of democracy.”

“We are very happy and have the approval of the house,” he added.

Parliamentary Affairs Minister Kamal Nath described the victory in Lok Sabha vote as the defeat of the politics of the Bharatiya Janata Party (BJP) and a victory for those who opposed the politics of that party.

External Affairs Minister Salman Khurshid said: “It is a moral victory for the government … the debate and result have shown that we have the numbers and we did what we thought is in favour of the country.”

The government comfortably won the vote in the Lok Sabha on foreign investment in multi-brand retail that is seen as important step in its reform process. It also won another motion on amendments to the Foreign Exchange Management Act (FEMA) to facilitate its initiative.