Rajasthan on 1 February 2014 scrapped its approval for the foreign direct investment in multi-brand retailing. The approval was given earlier by the previous Congress state government led by former Chief Minister, Ashok Gehlot.
Vasundhara Raje, the Chief Minister of Rajasthan has written a letter to Commerce and Industry Minister of India, Anand Sharma for revising the FDI in multi-brand retail in a letter. With this decision of scrapping the approval over FDI made Rajasthan the second state after Delhi to withdraw approval for FDI in multi-brand retail. These two decisions of Delhi and Rajasthan came just after the change of government. Earlier, Rajasthan was one of the 12 states that agreed to allow FDI in the retail sector.
The previous state government led by Ashok Gehlot gave consent to the FDI policy after the Union Government permitted 51 percent FDI in multi-brand retail trading. The central decision was made in September 2012 and the implementation decision was left on the states.