The Aam Aadmi Party (AAP) government in Delhi has disapproved FDI in retail in the state.
The party has written to the department of industrial policy and promotion (DIPP) seeking to withdraw its permission to allow FDI in multi-brand retail in the state, creating fresh uncertainty for the sector.
Last year, the central government permitted 51 per cent FDI in the multi-brand retail trading and left its implementation to the states.
As many as 12 states, including Delhi, had agreed to allow global retailers to open super market chains. The other states include Maharashtra, Karnataka and Andhra Pradesh. Delhi has become the first state to withdraw permission for FDI in the retail sector.