David Mulford

New Delhi, Jan. 29: Apart from handing India an ultimatum on the Iran vote, US ambassador David Mulford had lectured Delhi also on economic matters in his recent controversial interview.

Fresh excerpts made available today show the official brushing aside the Left’s objections to reforms in retail, banking and insurance, arguing the benefits would go to the “regular working people” of the country.

The ambassador favoured FDI in retail, changes in the FDI cap in the insurance sector and removal of hurdles to foreign banks.

“Why does (the) Left oppose it (FDI in retail)? Are they opposed to farmers and business guys and others getting credit developing their livelihoods and their businesses.? The beneficiaries are the regular working people of India,” Mulford said.

He said the experience of other countries showed that large retailers and small shopkeepers could co-exist. He cited small shops being run by Indians in the US in the shadow of big shopping centres.

“They make sales by virtue of the giant number of consumers that are pulled in to that area but who don’t want to go into a big department store to buy one item. So, they stop at a 7/11 (small store) and buy a six-pack of beer, toothbrush?. It is not a zero sum game,” he said.

He said the recent decision to open up the sector to single-brand retailers was a “first step” and a “breakthrough”.

“The ultimate objective should be to have a completely level-playing field? US retailers should be able to come into India and do the full range of retail business.”

CPM general secretary Prakash Karat reacted by saying: “The US ambassador represents Wal-Mart and the interests of big US corporate groups. But we represent the interests of our people.

“Earlier, Mulford had the arrogance to accuse Indian Parliament of breach of trust when they refused to open up the insurance sector. The US ambassador does not decide our policies; the Indian Parliament does.”