FDI in retail: doors closed
FDI in retail: doors closed

CM adheres to BJP’s established stand on multi-brand foreign retailers

FDI in retail: doors closed
FDI in retail: doors closed

Jaipur : Toeing the party line, the BJP government in Rajasthan has decided to disallow foreign direct investment (FDI) in retail, slamming its door on the foreign chains like Walmart to set up its shop in the state. Thus Rajasthan becomes the second state in the country after Delhi, to withdraw permission to sell directly to Indian consumers. 

The new BJP government in Rajasthan, headed by Vasundhara Raje, has written to the Union Commerce Ministry, stating that it will not allow Foreign Direct Investment or FDI in retail and she did not go beyond the party’’s established stand on FDIs. The BJP is, in principle, opposed to permitting FDI in multi-brand retail. Majority of the states, particularly the BJP ruled states in the country has already taken a stand against allowing FDI in retail.

With Rajasthan disallowing the entry of Walmart, the number of states who are against FDI in retail has touched the figure of 18.

According to Jyoti Kiran, BJP spokesperson, the party has clearly stated in its manifesto it would not allow any FDI in retail and the BJP government has followed what it had promised. The BJP routed the Congress government headed by Ashok Gehlot in the recent state elections. The Gehlot government had taken a stand to allow FDIs in retail on the plea that the retail stores would not only increase competition, but would also help in qualitative delivery.

Union commerce minister Anand Sharma, who is a Rajya Sabha member from the state was instrumentalist in convincing the former Chief Minister Gehlot to allow the FDI in retail. Congress rules states  Andhra Pradesh, Haryana, Maharashtra and Karnataka had already permitted the entry of multi-brand retail foreign chains and many are likely to open soon.

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