51% FDI in multi-brand retail as Govt opts for major reforms

Battling perceptions of policy paralysis, the government announced the surprise decisions after meetings of the Union Cabinet as well as the Cabinet Committee on Economic Affairs (CCEA), prompting angry reactions from its key ally TMC as well as BJP and Left parties.

The slew of reforms decided upon include raising FDI cap in broadcasting from 49 per cent to 74 per cent and allowing foreign investment in power exchanges.

The UPA government had first made an attempt to introduce FDI in multi-brand in November last year but beat a hasty retreat following stiff opposition from TMC, Samajwadi Party as well as opposition parties.

It has now decided to take the plunge within days of the conclusion of recent session of Parliament which was disrupted over coal scam.

The decisions come on top of yesterday's hike in diesel prices and capping of supply of subsidised LPG to cut oil subsidises which has already invited protests from allies and opposition.

"Let us not confuse consensus with unanimity. For unanimity we will have to wait in eternity. This (today's decision) has consensus," Commerce Minister Anand Sharma told a press conference here clearly conveying the message that the Centre has decided to go ahead with the reforms despite opposition. MORE