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India confirms suspension of retail reform India MPs end deadlock as retail suspension confirmed
(40 minutes later)
India's parliament has resumed after the government confirmed that it was suspending a plan to open up the retail market to global supermarkets. India's parliament has ended a two-week deadlock after the government confirmed it was suspending a plan to open up the retail market to global supermarkets.
The decision has been suspended "till a consensus is developed through consultation among various stakeholders", a statement said.The decision has been suspended "till a consensus is developed through consultation among various stakeholders", a statement said.
The parliamentary session was deadlocked for two weeks after the opposition parties protested the move. Opposition parties hailed a "victory" but the government insisted the suspension was only temporary.
The decision to allow foreign chains into India has been fiercely opposed.The decision to allow foreign chains into India has been fiercely opposed.
Critics say the move will destroy millions of jobs and businesses in the small retail sector. Critics say the move will destroy millions of jobs and businesses among smaller retailers.
Supporters say it will widen consumer choice, reduce waste and improve security for farmers.Supporters say it will widen consumer choice, reduce waste and improve security for farmers.
Finance Minister Pranab Mukherjee told the parliament on Wednesday that the government would "take a decision [on retail reform] after a consensus is developed after consultations with all stakeholders".
The stakeholders include chief ministers of states and all the political parties, he said.
Mr Mukherjee hoped that the parliament would begin functioning "as only 10 days are left for the session to end".
'Virtual rollback''Virtual rollback'
Finance Minister Pranab Mukherjee told parliament on Wednesday that the government would "take a decision [on retail reform] after a consensus is developed after consultations with all stakeholders".
The stakeholders include chief ministers of states and all the political parties, he said.
Mr Mukherjee hoped that parliament would now begin functioning, "as only 10 days are left for the session to end".
Main opposition Bharatiya Janata Party (BJP) leader Sushma Swaraj mocked the government in parliament.
"Bowing down to the popular sentiment is not a defeat for the government," she said. "That the government bowed down before popular sentiment is a great victory for democracy."
The opposition had refused to allow parliament to function since the announcement of the reform on 24 November, forcing adjournments almost every day.
Virtually no work has been done, including on a key anti-corruption bill.
Earlier on Wednesday, the government confirmed at an all-party meeting that the controversial retail reform was being put on hold.Earlier on Wednesday, the government confirmed at an all-party meeting that the controversial retail reform was being put on hold.
"It is a virtual rollback. It is a victory for democratic forces," said Gurudas Dasgupta of the Communist Party of India (CPI) who attended the meeting. "It is a virtual rollback. It is a victory for democratic forces," said Gurudas Dasgupta of the Communist Party of India (CPI), who attended the meeting.
However, Minister of Renewable Energy Farooq Abdullah said a decision on retail reform had only been suspended, and there had "been no rollback". However, Minister of Renewable Energy Farooq Abdullah said the decision on retail reform had only been suspended, and there had been "no rollback".
Analysts say the decision is a blow to the government's image, and wonder why it did not evolve a consensus before announcing the move. Analysts say the decision is a blow to the government's image and question why it did not evolve a consensus before announcing the move.
"The prime minister's image and the government's image will be definitely dented," said Neerja Chowdhury, a senior journalist.
Business leaders have criticised the opposition to retail reform.Business leaders have criticised the opposition to retail reform.
In an open letter, former Hindustan Unilever chairman Ashok Ganguly and Deepak Parekh, chairman of the Housing Development Finance Corporation, said opposing the reform was "to the detriment of the vast majority". An open letter from former Hindustan Unilever chairman Ashok Ganguly and Deepak Parekh, chairman of the Housing Development Finance Corporation, said opposing the reform was "to the detriment of the vast majority".
The government announced on 24 November it would allow 51% foreign ownership of multi-brand retail stores, allowing groups like Wal-Mart and Tesco to open stores. The government had announced it would allow 51% foreign ownership of multi-brand retail stores, allowing groups like Wal-Mart and Tesco to open stores.
Currently, foreign-owned multi-brand retail operators can only sell wholesale in India, not directly to customers.Currently, foreign-owned multi-brand retail operators can only sell wholesale in India, not directly to customers.