The Indian government is set to soften its stance on foreign investment in multi-brand retail, according to a report from the Deccan Herald.
The news comes after leading global retail chains such as Walmart, Tesco and Carrefour met with Indian Commerce and Industry Ministry members last week to discuss a stagnant nine months for investment in the sector.
Under current regulations, India allows up to 51 per cent foreign direct investment in multi-brand retail.
Foreign retailers wishing to enter the sector must invest a minimum of US$100m, with at least 50 per cent to be spent in back-end infrastructure.
It is understood a number of retailers at last week’s meeting raised grave concerns about the regulations, prompting the commerce and industry ministry to discuss the easing of some restrictions.
Second and third tier cities loom as the beneficiaries of such actions, with rules likely to be softened in what the Herald described as “non-hilly cities” with small population bases.
“Foreign retailers want to open stores in cities with population less than a million,” a commerce and industry ministry official told the Herald.
