Indian Parliament to vote on key retail reforms

INDIA: India's government has conceded to opposition pressure to allow lawmakers a vote on allowing foreign supermarkets in the country, in a bid to end a parliamentary deadlock that has stalled key reforms.

The announcement Thursday to hold the non-binding vote comes as the opposition protested against the policy, describing it as a sell-out to foreign chains such as Walmart that could force small family-owned stores to shut.

"I have admitted the motion and will allow discussion on the subject. The date and time... will be decided," Speaker Meira Kumar told the Lower House of Parliament.

"Now onwards I hope the house will run smoothly." Although the vote will not affect the government's ability to enact the policy, Premier Singh would suffer a major public setback if his policy fails to win enough support from lawmakers.

Sushma Swaraj, leader of the opposition Bharatiya Janata Party (BJP), whose lawmakers have led the noisy disruptions, welcomed the decision.

"I assure you the house will function peacefully," she added.

Singh said on Tuesday he was confident of winning the vote in Parliament over an issue which is seen as a test of strength of the ruling Congress party ahead of general elections in 2014.

The arrival in India of chains such as Walmart, Tesco and Carrefour is expected to herald a consumer revolution, with shoppers shifting to large, out-of-town supermarkets.

The reforms have triggered widespread opposition but the government and many industry leaders argue that a modern retail system would improve value and choice for consumers, create jobs and enable farmers to reduce wastage.

The Congress-led coalition lost its majority in September when a regional ally exited the government over the reforms.

The decision did not require a vote and has already become law, but the government's other proposals to open up the insurance and pensions markets will need parliamentary approval.

Singh called last week on all parties to let parliament function after the previous session was almost entirely lost due to protests by lawmakers, creating a massive legislative backlog.

AFP