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FDI in multi-brand retail gets only one state and three UTs’ endorsement

09 Aug 2012 Evaluate

The central government’s effort to attain consensus on allowing FDI in the multi-brand retail is still to get major acceptance. The government wrote to all states in June seeking their support for implementing the decision to allow 51% FDI in the multi-brand retail but till now it has received written communications signaling support for FDI from Delhi, Manipur, Daman & Diu and Dadra & Nagar Haveli.

The poor response from the state government’s such as Haryana, Maharashtra, Andhra Pradesh and Assam came as a setback to the central government which was hoping for more support as these states are being ruled by the Congress and its allies.

Commerce and Industry Minister Anand Sharma has pinned hopes on Assam and Haryana whose Chief Ministers constantly expressed their support for FDI in multi-brand retail. Assam Chief Minister, Tarun Gogoi even said that FDI in multi brand retail will not affect local traders but it would help them. But the absence of written assurances from them has led to Centre's embarrassment.

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