The government has allowed foreign investment in a host of sectors including multi-brand retail and civil aviation.
The UPA government can expect a roaring reception from the financial markets following the decision. It can also prove to be a mood-enhancer for the Congress-led government as it heads into state polls in Himachal Pradesh and Gujarat. Here is how heads of various states responded to the government’s decision:
Will rollout
Haryana – Farmers will get good price and consumers will benefit. FDI in retail is welcome in Haryana, says CM Bhupinder Singh Hooda.
Maharashtra – State all for the reform, says CM Prithviraj Chavan. ‘It will promote transparency, accountability and remove supply chain hurdles.’
Delhi – ‘Great step forward. Will mean quality food, jobs galore and equitable pricing,’ says Sheila Dikshit.
Rajasthan – According to CM Ashok Gehlot, move will improve availability of quality goods, enhance competitiveness and unlock true potential of the agricultural value-chain.
Assam – Happy with the decision; CM in favour of FDI in retail, says agriculture minister Nilamani Sen Deka.
Won’t
Gujarat – ‘I don’t know what PM is doing. Small businessmen will be forced to down their shutters now,’ says Narendra Modi.
Kerala – Ruling UDF and opposition LDF united in opposing FDI in retail.
Odisha – Firmly against. CM Naveen Patnaik had last year called it ‘ill advised and highly regressive’.
Uttar Pradesh – CM Akhilesh earlier said his party may support FDI if convinced it’ll help small farmers, but papa Mulayam ruled against it.
West Bengal -Ruling Trinamool has given Centre 72-hour to ‘rethink’ diesel price hike and FDI in retail.
Madhya Pradesh – Move will hit small traders and grocers. ‘We won’t implement it,’ says CM Shivraj Singh Chouhan.
Bihar – Local retailers will be marginalized and millions of jobs will be lost, according to CM Nitish Kumar.
Not decided
Karnataka – Jagadish Shettar govt will go through contents of policy before deciding, says state industries minister Murugesh Nirani.
Punjab – Will study the fine print and then react, says CM Parkash Singh Badal.
Jharkhand – Will decide after consulting people of state and local businessmen, says CM Arjun Munda.