Welcome Multinationals for retail business in India

India started doing reforms now. Finally after dithering for five years, the retail sector is opened up for foreign retail companies. It is a good opportunity for American, Britain, canadian companies to utilize this opportunity to expand their business in the present condition in Indian sub-continent. There is huge demand for retail products and hence there will not be any problem in selling. Today Cabinet committee has cleared the proposal for allowing Foreign Direct Investment in retail trades in india. For single brand retail, 100% FDI is allowed and for multi-brand retail , only 51% will be allowed. Some conditions are imposed for agri products like 60% of qty needed to be purchased from direct Indian farmers, 30% from others from India and balance from anywhere. Minimum investment is required to be around 100 million Dollars. This will become law once this is approved by parliament and it is ony a matter of time as cabinet committee cleared the same. So India can see more varieties in Electronics, toys, Furnishing, Pharma etc.. India may have the chance to see Wall mart, Carre-four etc. This will increase inflow of FDI to india. The dollar pressure will decrease and Indian rupee will get strengthened. The retail shares like pentaloon, Shoppers stop, Birla retail etc. will gain in share value.

Followers and readers are requested to visit http://www.shvoong.com/business-management/business-ideas-and-opportunities/2232451-india-invites-fdi-retail-trade/ for more details.

The likely new entrants may be:

Wallmart-  USA

Carrefour: France

Tesco: UK

Metro AG -Germany

Auchan – France

Best Buy – US

Lkea – Swedan (Home furnishing)


H & M – Swedan

Target – US

C.R. Venkata Ramani



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