The Cabinet today decided to operationalise 51 per cent FDI in multi-brand retail but left
it to the state governments to allow setting up of such stores.
The Cabinet headed by Prime Minister Dr Manmohan Singh cleared the decision at a meeting this evening.
For single-brand retail, the Cabinet decided that any firm seeking waiver of the mandatory 30 per cent local sourcing norms would have to set up a manufacturing facility in the country.
In November last year, the government had approved 51 per cent FDI in multi-brand. This was, however, put on hold due to political opposition, including from UPA constituent Trinamool Congress.