Yielding to unabated pressure from opposition parties and some quarters in the congress party, the Centre today said it has suspended the decision to allow foreign direct investment (FDI) in the retail market in the country.

The government’s decision paved the way for the parliament to resume its normal session after nine days of logjam.

The government offered to suspend the decision on FDI at an all party meeting early in the morning and the opposition welcomed the government’s decision. The opposition leaders said this should have been done long ago.

The government’s decision came through an announcement by the finance minister Pranab Mukherjee in the Lok Sabha. Mukherjee said the government has decided to put on hold the Cabinet decision to allow 51 per cent FDI in multi-brand retail till all stakeholders were consulted and unanimity arrived at.

Commerce and Industry Minister Anand Sharma made the announcement in the Rajya Sabha. (JUBS)