Just a day after announcing the steepest ever hike in diesel price, the government Friday took another politically contentious decision of allowing overseas investments in multi-brand retail.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, decided to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail.
This paves the way for the global retail giants like Walmart and Carrefour to open their stores in India.
The cabinet, in November last year, had decided to allow up to 51 percent FDI in multi-brand retail. But the move was kept in abeyance following protests from opposition as well as some of the allies of the ruling United Progressive Alliance (UPA), especially the Mamata Banerjee-led Trinamool Congress.