It wasn't just a vocal opposition that was against the Cabinet's decision to allow 51% foreign direct investment (FDI) in multi-brand retail business. The cabinet itself was split down the middle, which had an animated — even heated — debate on the pros and cons of opening up a sector that was so far considered politically too sensitive for farmers, small traders and consumers. Finally it took the prime minister to...

-Reuters   Commerce minister Anand Sharma said on Friday that the government's new policy to allow foreign supermarkets into the country would create 10 million jobs over three years, while not affecting smaller, domestic retailers. The government on Thursday approved 51 percent foreign direct investment in the supermarket sector, paving the entry of firms such as Wal-Mart, Tesco and Carrefour into one of the world's largest untapped markets. The government will have the first...

The Reserve Bank of India on Friday expressed the hope that foreign direct investment in multi-brand retail would help in bringing down inflation. “...Certainly it (FDI in multi-brand retail) would help improve supply chain and we hope it should also contribute to reducing inflation,” Reserve Bank of India Governor D. Subbarao told reporters on the sidelines of a memorial lecture here. Dr. Subbarao said 51 per cent FDI in multi-brand retail would...

-The Hindu   The Bharatiya Janata Party is unambiguous in opposing the government move to throw open the retail sector to Foreign Direct Investment. The party believes that allowing foreign investment in multi-brand retail would adversely impact the retail sector, which is growing, and put the country's entire food chain system into the hands of foreign firms. At a news conference here, leaders of the Opposition in the Lok Sabha and the Rajya Sabha,...

-The Indian Express While the BJP and the Left have been objecting to allowing FDI in retail, ally DMK’s stand could spell trouble for the government. However, there’s some relief in sight with Trinamool Congress chief Mamata Banerjee hinting that she is open to discussions on the issue. A few hours before the Union Cabinet cleared FDI in retail, Banerjee indicated that her party was open to discussions on the matter, without...