The Indian Prime Minister Manmohan Singh has stood his ground on the issue of allowing more Foreign direct Investment (FDI) in the retail sector in the country, a move that will allow global giants like Wal-Mart, Tesco and Carrefour to enter the Indian market.

The union cabinet's decision to allow FDI in single brand retail sector has been opposed severely by several sections political as well as social setup in the country. The opposition party, BJP will move an adjournment motion on the issue today with the backing of the Left in the parliament. Senior BJP leader Murli Manohar Joshi will introduce the motion in the Lok Sabha.

The ruling congress party is concerned as the opposition to the FDI not only comes from its main rival BJP but also others like AIADMK chief J Jayalalithaa, Trinamool Congress chief Mamata Banerjee and BSP chief Mayawati. The tree women Chief Ministers will have toe power to veto the entry of foreign firms into their states.

However, Corporate India believes that Indian government has speeded up the process of reforms in the domestic economy after months of inaction. The union cabinet recently cleared proposal to relax Foreign Direct Investment
(FDI) norms in eh country's retail sector. The cabinet approved a plan to allow 51% foreign direct investment in the supermarket sector in the country.

The department of industrial policy and promotion of the India government had put forward a proposal to allow 51% FDI in multi-brand retail and 100% in single-brand retail in the country. Most union ministries are believed to have given their consent to the proposal and a decision is expected next week on the matter. The move will allow foreign players to bring expertise in logistics and investment, which could help address supply bottlenecks in the country.

The government will subject supermarkets to strict local sourcing requirements and minimum investment levels aimed at protecting jobs. The central government has also said that individual states will be allowed to veto foreign retailers.

This is after a long time that the government has approved a major reform proposal. The move will open up Indian economy to international players and will further integrate it with the global economy.