Big-ticket reform

Last week’s decision to allow 51 per cent foreign direct investment or FDI in multi-brand retail and 100 per cent in single-brand retail should easily count as one of the boldest economic reform measures initiated by the United Progressive Alliance (UPA) government in its second term. Confidence in the government’s ability to take a big decision, like the one on opening up the retail sector, was low. Within the government, there were dissenting voices from members of at least two of its alliance partners — the Trinamool Congress and the Dravida Munnetra Kazhagam. The Congress also had a powerful section that had expressed strong reservations about the proposed liberalisation.

Read Full Story>>