Rajasthan bars entry of foreign supermarkets

MUMBAI Sat Feb 1, 2014 12:55pm IST

Women sell produce in a market in Pushkar in Rajasthan June 24, 2009. REUTERS/Jorge Silva/Files

Women sell produce in a market in Pushkar in Rajasthan June 24, 2009.

Credit: Reuters/Jorge Silva/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The government of Rajasthan has barred foreign direct investment in the multi-brand retail sector, newspapers said, becoming the second state to block foreign supermarkets from setting up shop.

Last month, the newly-elected Aam Aadmi (Common Man) Party government in the capital, New Delhi barred foreign supermarkets, opposing the efforts of Prime Minister Manmohan Singh to attract overseas investment and revive the economy.

Singh had thrown open the country's $500-billion retail industry to foreign investors late in 2012, allowing companies such as Wal-Mart Stores (WMT.N) and TESCO Plc (TSCO.L) to own majority stakes in Indian chains for the first time.

So far, fewer than half of India's 28 states have agreed to roll out the policy.

The decision by Rajasthan, ruled by the main opposition Bharatiya Janata Party (BJP), comes just months ahead of national elections that are due to be completed by May 2014.

(Reporting by Prashant Mehra; Editing by Clarence Fernandez)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
dizzyingdreamer wrote:
Wonder what Modi supporters will call this, progressive or regressive.

Feb 01, 2014 1:23pm IST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Rising Inflation

Rising Inflation

Food prices push inflation up, limit RBI's room to act.  Full Article 

New Direction

New Direction

New CEO Nadella pushes data culture at Microsoft.  Full Article 

Infosys Results

Infosys Results

Infosys says staff exodus a worry after Q4 profits beat estimates  Full Article 

Deal Talk

Deal Talk

Diageo in $1.9 billion bid to raise stake in United Spirits.  Full Article 

Reuters Poll

Reuters Poll

Domestic fund managers start to bet on own economy  Full Article 

S&P on India

S&P on India

India's policy reforms to affect sovereign ratings - S&P.  Full Article 

Toyota's Performance

Toyota's Performance

After two bumper years, Toyota braces for shift to slower growth.  Full Article 

Third Gender

Third Gender

Supreme Court recognises transgenders as third gender in landmark ruling.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage