The Manmohan Singh-led government saved itself some possible embarrassment Wednesday when it comfortably won the vote in the Lok Sabha on foreign investment in multi-brand retail that is seen as important step in its reform process. It also won another motion on amendments to the Foreign Exchange Management Act (FEMA) to facilitate its initiative.
Both the motions had been moved by the opposition. The first, main, motion on the government’s decision to allow 51 percent foreign direct investment (FDI) in multi-brand retail that would allow global supermarket chains to set up shop in India was moved by the BJP and the CPI-M. The second one opposing amendments to FEMA was moved by the Trinamool Congress.