New Delhi: Amidst continuous depreciation of rupee and weak sentiments in the stocks market, the government is expected to soon push some of the key pending reforms like allowing foreign direct investment in multi-brand retail.
"There is a sense of urgency in the government. This is clear from the yesterday's decision of steep hike in petrol prices. We can expect a decision on FDI in retail and aviation soon," sources said.
The Sensex on Wednesday ended below 16,000-level for the first time in more than four months and the rupee had breached the crucial 56-mark to a new low, though there has been improvement in the situation on Thursday.
Industry experts, too, said this is the right time for taking big reform measures. "We are hopeful that the government will take up the proposal and it will (decision to allow 51 per cent FDI in multi-brand retail) happen soon," Kishore Biyani CEO Future Group said.
Echoing sentiments, industry body Ficci said they are expecting some decision soon on FDI in multi-brand retail and allowing foreign airlines to take stake in domestic carriers. "The time has arrived. The government should immediately take decision on these two important issues. It will boost economic growth," FICCI said.
Last year, the government had attempted to allow 51 per cent FDI in the segment but had to suspend the move following widespread opposition, including from its own allies.
In the recent times, heads of retail majors like IKEA and Carrefour have met Commerce and Industry Minister Anand Sharma and pushed for allowing FDI in multi-brand retail.
Sharma has said the government will soon take decision on these matters. A final cabinet note has already been moved on allowing foreign airlines to take stake in domestic carriers.
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