It’s a move that could run into stiff political opposition. The government is considering a proposal to allow Foreign Direct Investment (FDI) in multi-brand retailing. Initially, it is exploring the possibility of permitting 26 per cent FDI. Organised retailing in India is expanding rapidly. Several global players have now set their eyes on the Indian market.
The government’s latest inititative could help retail giants like Wal-Mart and Tesco spread their operations in India. Under the present guidelines, 100 per cent FDI is allowed in the cash-and-carry businesses. Fifty-one per cent FDI is also permitted in single-brand outlets.
• Govt considers 26 per cent FDI in retail
• Move could help global retail giants expand operations in India
• Left likely to oppose the proposal