India’s ruling party has agreed to a vote that could see reforms allowing foreign supermarket chains into the country repealed.
According to a Reuters report, Indian Prime Minister Manmohan Singh’s minority government has bowed to opposition pressure to hold a non-binding vote on the future of foreign direct investment (FDI) in the country’s multi-brand retail sector.
In September the Indian government introduced legislation that paved the way for international retailers, such as Walmart and Carrefour to establish supermarkets in the country, as part of a package of reforms intended to encourage foreign investment, boost the slowing economy, and avoid a looming credit rating downgrade.
While the government does not need parliament’s approval to follow through with the FDI reforms, a defeat would exert pressure to roll these back, Reuters reported.
