India will announce new rules for foreign investment in retail by April 2012, paving the way for companies such as Wal-Mart and Carrefour to open stores, according to Gulfnews.com.
India’s junior trade minister Jyotiraditya Scindia reportedly told the online publication: 'We are much further down the process than people think. I think it is a huge opportunity `for India`.'
Indian law limits foreign retail investment to ownership of wholesale stores or 51 per cent holdings in single-brand shops.
Wal-Mart and Carrefour, the world's biggest retailers, already operate wholesale stores in India.
Mr Scindia told Gulfnews these two retailers had made a 'good start' helping farmers gain access to better technology and earn more money from the sale of their produce.
Allowing foreign investment in multi-brand retail may help moderate food prices, Kaushik Basu, chief economic adviser in the finance ministry, is reported to have said.
Food inflation averaged 16 per cent in last fiscal year after the late arrival of rains disrupted supply.
Narayanan Ramaswamy, executive director at retail consultant KPMG in Chennai, told Gulfnews.com:'There are not too many large untapped retail markets left, so foreign retailers are watching this decision closely because it is a tremendous opportunity.'
He predicts the government will open the industry gradually, first lifting the cap on foreign investment to 26 per cent.
'It is a question of when, rather than if,' he said.
