The departure of the Trinamool Congress over the government’s economic decisions did not affect the UPA co-ordination committee meeting today in any way, with most of the other allies backing the decisions and agreeing that they were necessary and unavoidable.
In the first meeting since the Trinamool Congress withdrew support to the UPA government, necessitating the requirement of support from other parties like the Samajwadi Party, the allies came together to back the government’s economic decisions like capping the number of subsidised LPG cylinders, allowing FDI in multi-brand retail and raising the price of diesel.
The UPA Coordination Committee agrees that economic reforms despite some of them putting a burden on people were “necessary and unavoidable”, Finance Minister P Chidambaram said after the meeting.
In the meeting the Prime Minister also underlined the need for a number of measures to ensure investments continue to flow, he said.
The Finance Minister did not say if there were any discussion on the political developments taking place in Maharashtra over the resignation of NCP leader Ajit Pawar, or the fact that the DMK has also been protesting against allowing FDI in multi-brand retail.
Speaking after a meeting of leaders in the ruling coalition, Chidambaram stressed that more changes were in the pipeline.
“The Prime Minister underlined the need for a number of measures that will ensure that there is no volatility in the rupee and that investment will continue to flow into India as well as stimulate domestic investors,” he said.
“The need to do more reforms was discussed. Specific measures will come before the cabinet,” he added.