The Indian government has finally decided to bite the bullet on allowing 51 percent foreign direct investment (FDI) in multi-brand retail, albeit in a different format. The long-pending Cabinet decision is set to be notified by the second week of September, after the Parliament’s monsoon session is over, with a clear message that the execution of the decision would lie in the court of the states.
A top official told Business Standard the main opposition that came from the United Progressive Alliance (UPA)’s ally, Trinamool Congress, had been "taken care of". "The main thing now is that Prime Minister Manmohan Singh wants to roll out the decision. Suspending the move had given an extremely negative impression of India’s decision-making powers to the world. So the decision has to be notified now, no matter what," the official, who did not want to be identified, said.
(Source: Business Standard)