A massive backlash against the Indian government's plans to give
foreign supermarkets access to the country's lucrative retail sector is
gathering momentum.
The leader of the southern state of Tamil Nadu has said she will resist the plans with all her powers.
Jayalalithaa said last week's bill was "ill advised and unilateral".
The national government announced last week it would be reforming the retail sector as part of a modernisation drive.
Under the new legislation the Indian cabinet agreed to allow foreign supermarkets to buy a 51% stake in Indian supermarkets. Single brand retailers, like IKEA, would be allowed to own their concerns outright.
But the political fallout is an unsettling development for the big players like Walmart, Tesco and Carrefour, who have been eyeing up India for a number of years.
Although the grocery titans can now move forward in the country they are unlikely to be given a straightforward welcome.
Tamil Nadu is one of the larger states, with a population of some 70 million, and the reaction by its state government is a sign of more of the same from other states across the country.
Under the bill supermarkets can only open stores in cities with a population of at least one million people.
There are about 53 such cities in India, according to the 2011 census, and 28 of those cities have political parties in place who are opposed to the move.
India is ripe for the picking with a growing economy and a population of about 1.2 billion people - but up until now the retail sector has been heavily protected with layers of law and bureaucracy.
The big supermarkets have welcomed the changes - as have some local business lobby groups who believe new investors will transform India's dilapidated infrastructure.
But there is also huge unhappiness about the radical changes.
India is in many ways a nation of small shopkeepers and farmers.
They fear millions of livelihoods may be cannibalised by the global supermarkets who will establish grand economies of scale in the pursuit of profit.
The Indian government is now likely to face continued resistance and challenges to the controversial legislation.
Closing the gates of "progress" though may be difficult.
The chief executive of Ikea, Mikael Ohlsson is visiting the capital New Delhi tomorrow.
It is expected he will announce grand expansion plans across the sub-continent.
The leader of the southern state of Tamil Nadu has said she will resist the plans with all her powers.
Jayalalithaa said last week's bill was "ill advised and unilateral".
The national government announced last week it would be reforming the retail sector as part of a modernisation drive.
Under the new legislation the Indian cabinet agreed to allow foreign supermarkets to buy a 51% stake in Indian supermarkets. Single brand retailers, like IKEA, would be allowed to own their concerns outright.
But the political fallout is an unsettling development for the big players like Walmart, Tesco and Carrefour, who have been eyeing up India for a number of years.
Although the grocery titans can now move forward in the country they are unlikely to be given a straightforward welcome.
Tamil Nadu is one of the larger states, with a population of some 70 million, and the reaction by its state government is a sign of more of the same from other states across the country.
Under the bill supermarkets can only open stores in cities with a population of at least one million people.
There are about 53 such cities in India, according to the 2011 census, and 28 of those cities have political parties in place who are opposed to the move.
India is ripe for the picking with a growing economy and a population of about 1.2 billion people - but up until now the retail sector has been heavily protected with layers of law and bureaucracy.
The big supermarkets have welcomed the changes - as have some local business lobby groups who believe new investors will transform India's dilapidated infrastructure.
But there is also huge unhappiness about the radical changes.
India is in many ways a nation of small shopkeepers and farmers.
They fear millions of livelihoods may be cannibalised by the global supermarkets who will establish grand economies of scale in the pursuit of profit.
The Indian government is now likely to face continued resistance and challenges to the controversial legislation.
Closing the gates of "progress" though may be difficult.
The chief executive of Ikea, Mikael Ohlsson is visiting the capital New Delhi tomorrow.
It is expected he will announce grand expansion plans across the sub-continent.
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