The union cabinet, at its meeting today, decided to allow 51 per cent foreign direct investment (FDI) in multi-brand retail business, allowing multinational retail giants like Wal-Mart and Carrefour to set up retail chains in the country.
The cabinet, at its meeting today, decided to operationalise 51 per cent FDI in multi-brand retail operations but left it to the state governments to decide on allowing such stores.
''The cabinet has approved the proposal of the Department of Industrial Policy and Promotion for permitting FDI in multi-brand retail trading, subject to specified conditions,'' an official release said today.
''The establishment of the retail sales outlets will be in compliance of applicable state laws/ regulations, such as the Shops and Establishments Act etc,'' the release said.
The implementation of the policy is also not a mandatory requirement for states, the release added.
The cabinet meeting headed by Prime Minister Manmohan Singh also approved 49 per cent foreign participation in the civil aviation and broadcasting sectors.