According to some indications, the central government in India will soon approve Foreign Direct Investment (FDI) in multi-brand retail sector in the country but the state governments will have the reight to decide on the issue.

The central approval for the FDI proposal is expected to come in September after the Parliament’s monsoon session. The UPS government has reportedly convinced Trinamool Congress, which was against multi-brand FDI earlier.

India’s commerce and industry minister Anand Sharma has already written letters to key state governments urging them to support the proposal. Congress-ruled states such as Rajasthan, Delhi, Uttarakhand and Manipur as well as Himachal Pradesh , which is ruled by BJP have extended their supported the proposal.

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.