In a major policy break from policy paralysis, the Cabinet Committee on Economic Affairs (CCEA) has approved 51 % foreign direct investment (FDI) in multi-brand retail.
The government has, however, left the option to invite multi-brand retail with the states. An opt-out clause in multi-brand retail FDI policy has been the most contentious issue. According to the clause, "Retail outlets maybe set up in those states which have agreed or agree in the future to allow FDI in multi-brand retail. This is an enabling clause, i.e. no FDI in retail will be allowed unless the state concerned explicitly agrees to the policy."
However, the UPA allies like the TMC are up in arms against FDI in retail as well as the diesel hike. The TMC has already set a deadline of 72 hrs for a rollback.
The issue had been pending for long due to opposition from key allies like the Trinamool Congress.