The third reversal came last week. As with the nuclear deal in UPA 1, the entire opposition, led by the BJP, had resisted the UPA’s decision to allow 51 per cent FDI in multi brand retail. For the BJP, this opposition had looked more natural. It counts the Bania community, which dominates traditional Indian retail (called kirana), as its loyal vote bank and FDI was seen as a threat to them. The RSS is instinctively opposed to anything big or foreign, and this was very big and 51 per cent foreign. Walmart was now as demonised as “Dunkel Uncle” (after Dunkel Draft, the first framework of negotiations leading to the World Trade Organization) was in the years of early reform two decades ago. Uma Bharati threatened apocalypse if the evil Walmart came anywhere near India. It was the first issue of economic reform that the Congress staked its political fortunes on, making a rare statement of support with a rally at Ramlila Maidan with the PM, Sonia and Rahul Gandhi. As with the nuclear deal, this issue was also put to vote in the Lok Sabha (although constitutionally it did not need parliamentary approval, just like the nuclear deal). The UPA won again but the BJP leadership had threatened to withdraw it if they came to power and their opposition was recorded in their manifesto. But the UPA’s decision was reaffirmed last week as FDI in multi brand retail was listed in the comprehensive FDI policy announced by the Modi Government.
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