India's union finance minister, Mr Pranab Mukherjee has said that the government is still committed to implementing its foreign investment policy in retail sector in the country, despite its decision to suspend the decision due to overwhelming opposition by opposition parties and traders.

"We are working hard to build consensus. Consensus building takes time. Not implementing FDI policy in retail does not mean we have shelved it,'' he said. He was speaking at the 106th Annual Session of PHD Chamber of Commerce.

He pointed out that the UPA does not have an absolute mandate in the houses and thus needs time to build consensus for new age reforms. Meanwhile, India's union commerce and industry minister Anand Sharma gad also voiced similar opinions after meeting several industry leaders. Sharma has asserted that the government has only suspended its decision to allow foreign direct investment (FDI) in multi-brand retail in India and it has not completely abandoned its plans.

The move will allow global giants like Wal-Mart, Tesco and Carrefour to enter the Indian market.

Those who favor the deal argue that it will address the issue of supply bottle necks, develop supply chain infrastructure, reduce wastage of food and improve efficiency, besides generating employment. They also say that it will benefit farmers, who will be able to negotiate better deals with large firms and ultimately, customers, who will get commodities at a cheaper price.

Opponents argue that the allowing big international players will affect small retailers, which dot the country's streets. They cite the examples of Thailand and Malaysia, which allowing FDI in retail has resulted in problems for small retailers.

The union cabinet's decision to allow FDI in single brand retail sector has been opposed severely by several sections political as well as social setup in the country. The central government has also said that individual states will be allowed to veto foreign retailers. The chief ministers of Uttar Pradesh, West Bengal, Tamil Nadu and Bihar have vowed not to allow FDI in their respective states.