Column : Not a ‘done deal’ yet
The twin victories in the Lok Sabha have prompted many a political manager within the UPA and even sections of the press to claim that FDI in multi-brand retail is now a ‘done deal’. Many Congressmen have hailed it as a historic victory for the party and demonstrated much exuberance over the development. Getting the house, consisting of directly-elected representatives of people, to support the government’s executive decision is no doubt a shot in the arm for the beleaguered government. But such celebrations are somewhat premature since RBI-made amendments must also pass the hurdle of getting a similar approval from the Rajya Sabha where the numbers stack up much more against the government. This, in fact, is a mandatory requirement and must be secured by the government to implement the revised policy for FDI in retail.
Section 46 of FEMA prescribes the process for rule-framing by the Union government and for regulation-making under FEMA by RBI.
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