Is the government finally getting ready to open up the retail sector to foreign direct investment? Pranab Mukherjee pretty much hinted as much in his budget speech. Indications are that the abnormal price rise in foodgrains may have prompted the government to consider gradually opening up the retail sector to FDI.
"We need greater competition and therefore need to take a firm view on opening up of the retail trade," he quoted the prime minister as saying. Pranab argued that it will help in bringing down the considerable difference between the farm gate prices, wholesale prices and retail prices. The final decision may take about two years though, say retail industry executives.