Rajasthan on 1 February 2014 scrapped its
approval for the foreign direct investment in multi-brand retailing.
The
approval was given earlier by the previous Congress state government led
by former Chief
Minister, Ashok Gehlot.
Vasundhara Raje, the Chief Minister of Rajasthan
has written a letter to Commerce and Industry Minister of India, Anand Sharma
for revising the FDI in multi-brand retail in a letter. With this decision of
scrapping the approval over FDI made Rajasthan
the second state after Delhi to withdraw approval for FDI in multi-brand
retail. These two decisions of Delhi and Rajasthan came just after the change
of government. Earlier, Rajasthan was
one of the 12 states that agreed to allow FDI in the retail sector. The
previous state government led by Ashok Gehlot gave consent to the FDI policy
after the Union Government permitted 51 percent FDI in multi-brand retail
trading. The central decision was made in September 2012 and the implementation
decision was left on the states.
