Now BJP-led Rajasthan bans FDI in retail

There is more bad news for the multi-brand retail sector as the BJP-led Rajasthan government has followed

the footsteps of Arvind Kejriwal, Chief Minister of New Delhi. The state has banned foreign direct investment (FDI) in multi-brand retail trading. The news is a blow to several global retailers, who were already in a state of ambiguity due to the uncertain political environment in the country coupled with dilemma over mandatory norms of the FDI policy.

Apart from Tesco, which has tied up with Tata Group's Trent, and has already received a green signal from the government to go-ahead with its plans for multi-brand retail, others such as Walmart and Carrefour have adopted a wait and watch policy. Tesco plans to begin its operations in Maharashtra and Karnataka.

Sources confirm that the newly elected BJP government in Rajasthan has communicated its decision against allowing FDI in multi brand retail to the Union commerce and industry ministry. It may be known that the BJP has been opposing the FDI policy since the beginning.

Several studies have shown that consumers will have saved up to Rs 1.95 lakh crores across segments annually while farmers and other stakeholders would benefit significantly. “These jobs would provide fair wages and benefits, opportunities for further development and growth and better working environment than most alternatives available to such employees,” said a CII-Boston Consulting Group report.