Blog: Petah MarianIndia to ease retail restrictions by October?

Petah Marian | 6 June 2011

India's door "will be open to Tesco in four months", the country's commerce and industry minister Jyotiraditiya Scindia reportedly said over the weekend.

According to The Sunday Telegraph, the minster moved to reassure its trade partners that India remains an exciting investment and development destination and highlighted the huge potential for supermarket firms in India's underperforming agriculture sector.

The comments follows a government panel recommending the easing of rules over foreign investment in the country's retail sector.

An inter-ministerial group on inflation last week put forward the proposal as part of steps to temper inflation and cut down the margin between farmgate and retail prices.

At present, overseas retailers can own wholesale cash-and-carry chains outright but can only hold a 51% stake in single-brand outlets - like Nike stores. In a bid to protect local shop owners in India, foreign retailers cannot own multi-brand stores.

The relaxation of rules on foreign direct investment in India's retail sector has moved in fits and starts over the last few years, with foreign retailers like Wal-Mart and Tesco lobbying to move into the potentially lucrative market, while the country's lawmakers have wanted to protect its local retailers from an international invasion.

There has been much speculation in recent years over the future of FDI in the country, with talk it would be relaxed last year. However, for all the speculation and ministerial pronouncements, the relaxation of these rules remains simply talk.

 


BLOG

Another reshuffling of pack at Hain Celestial

Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....

BLOG

FrieslandCampina looking to sell final non-dairy asset

FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....

BLOG

just-food back up and running

To follow on from our earlier notice and after some hard work from our technical team, just-food is back live after today's power outage....

BLOG

Storm Doris causes power outage at just-food

Much of the UK has felt the impact of Storm Doris today - and just-food's head office has been no exception....

just-food homepage



Forgot your password?