The Indian capital of Delhi became the country's first state to withdraw foreign direct investment (FDI) from retail sector, sources said Monday.

The state government led by Chief Minister Arvind Kejriwal, who is leader of anti-corruption Aam Aadmi Party (AAP), has in a letter to the Commerce Ministry withdrawn the permission for FDI- funded retail stores which was earlier okayed by former Congress government led by Chief Minister Sheila Dikshit, the sources said.

The FDI withdrawal was, in fact, part of the AAP's election manifesto during the Delhi assembly polls in December last year.

The Indian government had allowed 100 percent FDI in multi- brand retail sector in 2012, despite stiff opposition from many political parties who claimed that the entry of foreign players into the 450 billion U.S. dollars retail sector will devastate the livelihood of millions of small shop owners.

However, states were given the liberty not to implement the decision. The states that have allowed FDI-funded stores include Andhra Pradesh and Karnataka in the south, and Maharashtra in the west. Endi

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