India eases foreign investment rules in retail sector These concessions to foreign retailers are an undoubted response to some intense lobbying and brinkmanship behind the scenes from global players like Carrefour, Tesco and Wal-Mart, all of whom have held meetings to clarify the nature and degree of restrictions that accompany direct market entry. The experience of WalMart in particular, which has been clogged with red tape and legal challenges has no doubt set a sobering example to other retailers, while single brand retailers such as Ikea have had much more luck in negotiating the terms of their entry. For the Indian government this is something of a balancing act: on the one hand they crave the investment from foreign retail, but on the other the measures are hugely unpopular in India and any investment needs to tangibly benefit local businesses too. With that in mind it seems unlikely that this modest easing of restrictions will leave anyone happy, with retailers pressing for more and popular opposition pushing back just as hard.
Posted on: Fri, 02 Aug 2013 09:17:14 +0000
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