India has signaled plans to open up to foreign retailers, paving the way for the likes of Tesco and Walmart to muscle in on the world’s third-largest grocery market.
The Indian government has overturned a key rule limiting foreign supermarkets to operating in the country as minority partners of Indian firms. They can now take stakes of up to 51%, handing them control of the ventures.T
he new ruling was designed to inject capital into the fast-growing industry, which could grow from $394bn in 2011 to $430bn next year, according to IGD figures.
“International retailers will bring technology, expertise and funds to invest in building robust supply chains across the country,” said Nick Everitt, IGD’s director of retailer insight.
Global retailers including Walmart, Tesco and Carrefour, which already have stakes in the Indian market, could use the new law as springboard for expansion.
“It will allow those retailers currently only present via cash & carry to build a retail presence and move deeper into the country than ever before,” Everitt added.
Source: The Grocer
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