The high-profile Investment Commission has recommended allowing FDI in retail, which has been a contentious issue in the past, as part of a strategy to attract US$64 billion FDI by 2009-10, reports The Times of India.

New Delhi appears eager to push the report, which is evident from a meeting convened by Prime Minister Manmohan Singh to discuss the 99-page document next week, but it could face serious hurdles from the Congress-led UPA government's Left allies.

The government has been dithering in allowing foreign retail chains like Wal-Mart to set up shop in India, but the three-member panel has suggested that 49% FDI be permitted initially and there should not be any strings attached in the form of number of outlets or permission to open stores only in certain locations.

For wholesale trading, the committee has recommended 100% FDI through the automatic route, which would mean that a foreign investor only needs to inform the RBI once the investment has been made.

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