New Delhi: Kerala Chief Minister Oommen Chandy on Friday gave his backing to the Centre's proposal to allow 51 per cent foreign direct investment (FDI) in multi-brand retail, however, adding that it won't be implemented immediately in Kerala.
Speaking to reporters, Chandy said that he would support FDI in retail, but political compulsions will stop him from implementing it in his state.
"At present we are ruling it out, but we admit the plus points of FDI. But, a state like Kerala is not ready to absorb the shock," he said.
At a Coordination Committee meet earlier this week, the allies of the Congress-led United Progressive Alliance (UPA) gave its firm support to the economic policy decisions taken recently by Prime Minister Manmohan Singh that included 51 per cent FDI in multi-brand retail, hiking the diesel prices and a cap on subsidised LPG cylinders.
Chandy is the first Congress minister to say no to implementing FDI in state.