Blog: India tries to revive FDI reform
Michelle Russell | 20 July 2012
As foreign direct investment in India fell between April and May, it seems the country's government is again looking at opening up regulations on overseas investment in the local retail sector.
The figures, according to government data reported by the Wall Street Journal this week, show investment fell 38% to US$3.2bn from a year earlier.
At present, India allows stakes of as much as 100% for foreign retailers that are "single brand" but investment in retailers that sell a variety of brands are prohibited.
In November last year the Indian cabinet announced reforms proposals that included a plan to allow foreign companies to own up to 51% of multi-brand retail stores, opening up the market to major retailers.
However, these reforms were put on hold in a bid to win more political support for the policy after widespread opposition to the plans.
India's ruling Congress Party suspended the plans "until and unless there is a consensus of all parties on the matter".
India's commerce minister Anand Sharma has now written to the chief ministers of a number of states that aren't allied with the Congress Party, in a bid to persuade them that backing the introduction of foreign supermarket chains in India would improve the country's supply chain, the WSJ reported.
Supporters argue opening FDI in multi-brand retail could bring in much needed investment to the emerging market, which, after several years of high growth, has seen its economic prospects dim slightly.
With the next session of Parliament due to start in August, we may then have a clearer picture as to whether India's government is likely to declare the policy in effect any time soon.
We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....
Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
- General Mills on Q1, innovation, margins
- Interview: Mondelez's outlook for China
- Aryzta FY results, outlook for 2017 - 6 takeaways
- Interview: Mondelez eyes sweet success in China
- What next for Bernard Matthews? - comment
- ConAgra acquires Frontera Foods' "gourmet" brands
- Nestle revamps foodservice arm
- Nestle launches Nesquik Protein Plus for adults
- Investors urge company action on meat production
- Nature’s Path takes majority stake in Gorilly Good
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Redefining Snacks: From Conventional Snacks to Snack Replacements
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Foodservice Market 2016-2020