The government of Rajasthan has disallowed foreign direct investment (FDI) in multi-brand retailing.
The decision of the state government has already been sent to the Ministry of Commerce & Industry. After Delhi, Rajasthan is the second state to withdraw permission for FDI in the retail sector.
Earlier this month, the Aam Aadmi Party (AAP) government in Delhi disapproved FDI in retail in the state. The party has also written to the department of industrial policy and promotion (DIPP) in this regard.
In 2013, the central government had 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.