AAP 2.0 may soften stance on foreign retail but party still mum on e-tail

Foreign retailers in Delhi may soon get a breather as the soon to be elected Aam Aadmi Party (AAP) government may compromise on its manifesto and allow FDI in retail. [caption id=“attachment_2090627” align=“alignleft” width=“380”] AAP’s Arvind Kejriwal celebrates the party’s victory. Naresh Sharma/ Firstpost[/caption] In an statement to BusinessLine, an AAP senior party leader when questioned on the parties stand was quoted as saying, “We need to keep our doors open and then see how our own entrepreneur flourishes amidst competition.” This statement can be considered a drastic change from the manifesto where in the party says it is completely opposed to  FDI in retail. “FDI in retail will lead to the loss of millions of jobs in the small business sector. AAP is opposed to FDI in retail in Delhi,” says AAP’s Delhi election 2015 manifesto. In 2014, when  AAP first came to power in Delhi,  the capital became the first state to withdraw its permission for FDI in retail. “I am directed to inform you that government of NCT of Delhi has reviewed its earlier decision and it has been decided not to support FDI policy in multibrand retail trade in Delhi,” wrote the then Delhi Industrial Secretary Amit Yadav to DIPP Secretary. However, things have changed within the AAP since 2014 and the party’s stance on FDI in retail may have turned from rigid to a more contemplative one. In April 2014, in an interview to CNBC-TV18 AAP spokesperson Nagendar Sharma said, “We have made it very clear that we are not blindly against FDI. What we have said is it needs to be reviewed from sector to sector.” Moreover, even e-commerce companies are on the edge as Kejriwal has in the past termed  e-tailed as a ‘scam’ for its predatory pricing model . The AAP leader has also  opposed e-commerce and indicated his preference for brick and mortar stores. AAP had a landslide victory in Delhi Election 2015, winning 67 of the 70 seats with a 54.3 percent voteshare. BJP just managed three seats while the Congress did not even get one. As stated in its manifesto, AAP is slated to make many changes in Delhi on the economic front promising to cut electricity bills, simplify VAT structure, incentivise entrepreneurship, ease tax compliance, provide better infrastructure etc. The AAP has also vowed to ensure that starting a trade or a business would only take one week.