Mamata will understand gains of FDI in retail if they are laid out: Kaushik Basu

Calcutta, July 7 (PTI): West Bengal Chief Minister Mamata Banerjee would understand the benefits of opening up multi-brand foreign direct investment (FDI) in retail if they are explained to her, the Chief Economic Advisor, Kaushik Basu, said here on Saturday. "Mamata Banerjee is intelligent, but retail FDI argument is very complex. If it is explained to her then she will understand it is a win-win situation for the people of Bengal," Basu told an interactive session at the Bharat Chamber of Commerce. Multi-brand FDI in retail was stalled after it was opposed by some parties including Mamata's Trinamul Congress, a key constituent of the United Progressive Alliance (UPA). Basu also said India now has to learn to live with rupee at Rs 50 against the US Dollar. "Days of Rs 47-48 are gone. We have to learn to live with above Rs 50 and early 50s," he said. The economic advisor blamed European crisis for the volatility and sharp depreciation of the rupee. He said there was scope for taking ahead small ticket reforms like 'managed de-control of diesel' since big reforms like Goods and Service Tax (GST) could not be taken up in a hurry. "Administrative reforms and governance are also important for exports to grow," he said. Basu, without elaborating, said the next 3-4 months would be difficult. "People will be able to see easing of inflation below seven per cent from October," he added.