NEW DELHI: India's government, which lost its majority in September, faced a test of its ability to marshal support in parliament on Wednesday with a vote on a contentious recent reform of the retail sector.
After two days of stormy debating in the rowdy lower house, lawmakers are set to pass judgement on new rules opening up the highly protected retail sector to foreign supermarkets that are being allowed in for the first time.
While a loss for the left-leaning coalition of Prime Minister Manmohan Singh would not reverse the policy, it would be a severe blow to the government and would set back efforts to push through other pro-market reform measures.
The likelihood of early elections before their scheduled date in 2014 would also rise, but coalition insiders have expressed confidence the government will defeat the non-binding motion against them with the help of outside allies.
"We are in touch with all (parties). We have requested them to support us," junior parliamentary affairs minister Rajeev Shukla told reporters outside parliament.
"FDI (foreign direct investment) will not hurt the interests of farmers or small traders. In fact, it will help them," he added, addressing criticism from the opposition.
On Tuesday, during a day-long debate, opposition MPs lambasted the idea of foreign supermarkets in India, saying they would wipe out small shopkeepers, exploit farmers and sell only Chinese-made products.
Mulayam Singh Yadav, an ally of the government but an opponent of foreign supermarkets, invoked the memory of independence leader Mahatma Gandhi who burnt foreign cloth as a protest against British products.
The lower house of parliament is expected to vote later Wednesday, with a vote in the upper house scheduled for Friday.
Supporters of the arrival of chains such as Walmart, Tesco and Carrefour say it would revolutionise shopping in India, with consumers offered cheaper food in large, modern supermarkets, as well as improving the wasteful supply chain.
Premier Singh's government has embarked on a string of reforms since September, throwing open key sectors such as retail and aviation while proposing greater foreign investment in insurance and pensions.
The pro-market push comes as the government faces a sharply slowing economy, a gaping fiscal deficit and high inflation, which has stoked pressure on the left-leaning alliance.
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