FDI in retail passed in the Rajya Sabha also

The UPA government secured a second victory as FDI in retail was passed in the Rajya Sabha. It had already won vote in Lok Sabha.

As seen by the government, this win will give fillip to implement economic reform agenda seen as crucial to revitalizing growth and slashing a swollen fiscal deficit.

The policy will open paths for foreign supermarkets to come into the country. It will facilitate global retailers such as Wal-Mart to establish shops in the country’s $450 billion retail sector, and is targeted at attracting more overseas investment and controlling inflation.

Why BJP is opposing it?

BJP wants a 26 percent cap set on investment, which was recommended by the standing committee on finance, against the government’s proposed 49 %.