India ‘suspends’ plan to open up to global supermarkets
India’s government is reported to have put on hold plans to open up the retail market to global supermarket chains.
Just days after approving long-awaited proposals to raise the limits on foreign investment, a government ally said he had been told the policy was suspended.
The decision to allow chains such as Walmart and Tesco into India has sparked fierce opposition.
Critics fear the move would destroy millions of jobs and businesses.
Mamata Banerjee, whose Trinamool Congress contributes 19 votes to the ruling Congress party-led coalition, said that Finance Minister Pranab Mukherjee had told her that the policy would be put on hold.
“(Mukherjee) has told me that the centre has decided to suspend implementation of the decision to allow FDI (foreign direct investment) in retail,” Ms Banerjee, chief minister of West Bengal, told reporters in Calcutta.
“He has told me that the decision will not be implemented unless there is consensus on the issue,” said the chief minister, who is an opponent of the policy.