India, Asia’s third-largest economy, could soon open its doors to foreign owned retail giants such as Wal-mart and Carrefour.
Indian government officials are weighing up the benefits of allowing foreign owned multi-brand retailers into the country by removing current laws which limit overseas investment to single brand retail or wholesale outlets, reported Bloomberg.
The government is reviewing feedback it has received from interested parties such as foreign retailers and industry associations after requesting input in July.
It is believed the move will create jobs and benefit farmers and storage chains while lowering costs to consumers, said junior trade minister Jyotiraditya Scindia in an interview in New Delhi recently.
'In the next two to three months, you should expect some traction on the plans,' he stated.
Industry groups such as the Confederation of All Indian Traders, however, are opposing the legal shift, which protects the interests of owners of small stores.
'We don't see any reason to invite these people and we are going to oppose it very strongly,' said the group's secretary general Praveen Khandelwal. “I am unable to understand how in a short span of three months the government will be able to consider the feedback.”
Modern retail formats have been regaining their footing in India this year, and despite initial setbacks foreign retail groups are showing continued interest in the growing market.Retail sales in India are expected to grow 53 percent to Rs25 trillion (US$545bn) by 2014.
