MUMBAI Feb 1 The government of India's western
state of Rajasthan has barred foreign direct investment in the
multi-brand retail sector, newspapers said, becoming the second
state to block foreign supermarkets from setting up shop.
Last month, the newly-elected Aam Aadmi (Common Man) Party
government in the capital, New Delhi barred foreign
supermarkets, opposing the efforts of Prime Minister Manmohan
Singh to attract overseas investment and revive the economy.
Singh had thrown open the country's $500-billion retail
industry to foreign investors late in 2012, allowing companies
such as Wal-Mart Stores and TESCO Plc to own
majority stakes in Indian chains for the first time.
So far, fewer than half of India's 28 states have agreed to
roll out the policy.
The decision by Rajasthan, ruled by the country's main
opposition Bharatiya Janata Party (BJP), comes just months ahead
of national elections that are due to be completed by May 2014.