18 September 2012 Last updated at 14:56 ET
Ms Banerjee called the new
retail policy a 'disaster' for India's poor.
A key regional party has pulled out
of India's ruling coalition over its plan to open the retail sector to global
supermarket chains and other reforms.
The Trinamool Congress party of West Bengal Chief Minister Mamata Banerjee
said that its six ministers would resign from the coalition on Friday.
Ms Banerjee, who is also angry at fuel price rises, said her 19 MPs would not
back the coalition in parliament.
Correspondents say the government's parliamentary majority is not at risk.
"My party's six ministers have decided to resign. It is time to fight the
battle alone," said Ms Banerjee after a meeting of Trinamool leaders in
Calcutta, the capital of West Bengal state.
The BBC's Amitabha Bhattasali in the city says that Ms Banerjee's move was
made in part because her bedrock support in West Bengal - the lower middle
classes - is furious about the possibility of foreign investment taking away
much-needed jobs.