States remain divided over allowing 51% FDI in retail

Even as the centre tries to evolve a consensus on allowing foreign investment in multi-brand retail, several states are now coming out in the open on this issue. Today, the National Democratic Alliance (NDA)-ruled states of Bihar and Karnataka spoke out for the first time on this sensitive issue. CNBC-TV18's Aakansha Sethi gives a lowdown.

Is FDI in multi-brand retail going the way of the goods and services tax, with states controlling the retail trade, being divided on political lines in their stance towards this crucial reform? This question assumes importance given that only last week, the central government's committee of secretaries, headed by cabinet secretary Ajit Seth, decided to seek views of state governments on allowing 51% FDI in multi-brand retail. But going by the initial reactions, it may well be an uphill task. "We have to take care of its impact on retailers. India is not prepared for FDI in retail," BS Acharya, Finance Minister, Karnataka said. It is not just Karnataka, but even a state like Bihar