The Indian government permitted single-brand foreign retailers to open stores
The Indian government has permitted single-brand foreign retailers to open stores.
Retailers are now able to invest beyond the previous limit of 51 per cent ownership. However, they are required to buy 30 per cent of their goods from smaller, domestic industries.
This move is a significant step forward after plans to open the supermarket or multi-brand sector were delayed following a political outcry.
Many large domestic retailers were happy with the agreement, which was pushed through government on Tuesday.
"This is a welcome move with a clear potential to lift the general mood in the economy," said Rajan Bharti Mittal, managing director of Bharti Enterprises which partners with Wal-Mart supermarkets.