In September 2012, the UPA government announced its policy of permitting 51 percent FDI in multi-brand retail with accompanying riders. In an unusual admission that they did not achieve a consensus on the policy, the UPA left it to the states to decide if they would permit large-format foreign retailers to open outlets within their borders. Promptly, a majority of the States declared that foreign retailers are not welcome in their territories.

As the Congress lost state elections in Delhi…