Union Cabinet clears 100% FDI in single brand retail, and 50% in multi-brand retail. The Bharatiya Janata Party (BJP), the Left, UPA ally Trinamool Congress along with some Cabinet ministers Veerappa Moily and Mukul Wasnik have opposed it. The BJP favours a fragmented market so that the consumers have a wide choice and feels consolidated markets make the consumer captive.
BJP is completely opposed to FDI in retail sector. It feels that our economy is dominated by the services sector which accounts for 58 per cent of India's GDP. The retail chains in India, both small and big, account for a major segment of this sector. FDI with deep pockets entering this segment will have an adverse impact on our growing domestic retail sector.
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