She said that the government on Thursday eased norms for FDI in multi-brand retail by diluting contentious 30 percent sourcing clause and allowing foreign chains to set up stores in cities which have population less than 10 lakh.

"It is shameful that almost a year since the UPA government allowed FDI in multi-brand Retail, there has been no significant foreign investment to speak of," Lekhi said.

She said that the government should explain why it had framed clauses in an unthinking manner that it had to rescind them in one year on request of foreign retailers. Lekhi added that it was surprising that the government had also relaxed rules relating to back-end infrastructure.

"This was one of the biggest arguments made by the UPA to justify its decision on FDI in multi brand retail. This flip-flop by the UPA is symptomatic of the irrational manner in which it has gone about economic policymaking," she said.

Lekhi said that the UPA government has been unable to check the slide of rupee and was expecting to shore up its value through big investments by foreign retailers.

"Had the UPA been paid more attention to infrastructure sector and demonstrated better stewardship, we would have not been in this situation with policy flip-flops that make us look like a banana republic to foreign investors," she said.


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