India clears way for foreign retail investment
"The move is to attract investment from global brands," Sharma told a press conference, announcing the decision to allow in supermarket groups with strict conditions in a move bound to stir political opposition.
Previous moves in this direction have been blocked by opposition from shopkeepers and opposition parties.
However, the governments sees foreign investment in retail as an opportunity to improve the food supply at the same time as developing employment opportunities.
Conditions imposed on retailers interested in India expansion include a minimum investment of $100 million into stores in cities with populations over the one million mark and sourcing at least 30% of produce from India.
Also, the implementation of the law is at the discretion of the individual states, meaning that, where there is opposition states can opt out.
It is thought the move may complicate things for Prime Minister Manhoman Singh, who will fact the delicate task of keeping the coalition government together in face of opposition to the decision.
The Indian retail sector is worth an estimated $470 billion in annual sales, with high growth potential as India's 1.2 billion people move towards a more Western-style consumer economy.
Source: india.nydailynews.com