Monday, January 30 2006 11:26 Hrs (IST) - World Time -

New Delhi: In remarks that may raise the hackles of Left parties, US Ambassador David Mulford has brushed aside their criticism to opening up of retail and liberalisation of foreign direct investment regime in banking and insurance, contending that the beneficiaries were the regular working people of this country.

Mulford favoured changes in Foreign Direct Investment (FDI) caps in the insurance sector and removal of impediments to foreign banks in India.

"Why does Left oppose it (opening up of retail to FDI)? Are they opposed to farmers and business guys and others getting credit developing their livelihoods and their businesses? I don't understand what their opposition is about because the beneficiaries are the regular working people of India," Mulford said here in an interview to sources.

The Ambassador's remarks on the Iran nuclear issue made in the interview were reported earlier this week.

Referring to the Left parties' argument that opening up of retail to FDI will hit small traders, he said the experience of other countries showed that large retailers and small shopkeepers can co-exist.

"I recognise there are complicated problems there because of the innate structure of your current small shop sector. But surely, you know, we have found in other countries that large retailers and small shopkeepers can co-exist perfectly well," he said.