Indian commerce and industry minister, Anand Sharma, doesn’t believe foreign investment in the country’s retail sector has spelt the end for small businesses.
While Sharma admitted global retail giants are showing increased interest in growing their presence in the sub-continent, he said small “corner' shops and vegetable vendors continue to prosper.
“Even today 96 per cent of the retail in India is with the small retailers and only 4 per cent is organised,” Sharma told The Hindu.
India currently allows up to 51 per cent foreign direct investment in multi-brand retail.
The investment regulations have forced global retailers to approach the market with caution, with major players, such as Walmart, Metro and Carrefour, opting to enter the Indian market under cash-and-carry arrangements.
However, UK-based Tesco’s interest in establishing their own multi-brand retail line in India could signal the changing of the guard, according to Sharma.
'There has been expression of interest (in setting up multi-brand retail stores) by some major players,” he explained.
“The first step has been taken by Tesco and Sainsbury's.
“There has also been an expression of interest but not a formal proposal, from Carrefour and H&M. They are all are coming.'
