India Retail News

The recent approval by the Union Cabinet for allowing 51% foreign direct investment (FDI) in multi-brand retail in India and increasing the FDI limit in single brand retail in India to 100% (from the existing 51%) has come at a time when global retailers are facing headwinds in their home countries and thus scouting for new emerging markets, while domestic players, on the other hand, are burdened with piling debt. While this long awaited approval, which has come as a relief to many organised retailers, includes a set of riders for the foreign investors like minimum investment, deployment of funds invested, local sourcing, cities being opened for initial roll-out, etc. Also, opposition from certain State Governments and political parties raises significant hurdles for effective implementation of the reforms.