India Opens The Door To Foreign Retailers

India will open its retail business to foreign investors, giving WAL-MART (Walmart), Carrefour and Tesco.

Premier Manmohan Singh (Manmohan)

Singh) the government's decision on Thursday night will allow foreign groups to "multi brand".

The foreign direct investment cap of "single brand retailers" also increased from 51% to 100%.

Bharti Walmart CEO Jia Yin Raj Jain to India TV CNBC

TV18 said: "I think this will have an extremely profound and lasting impact on the retail industry of India as a whole.

I think this will change the way of shopping for India consumers, and more importantly, will change the way of supply chain management in India.

Bharti

Walmart is a joint venture between WAL-MART and Bharti Enterprises of India, USA, which provides cash and wholesale and supply chain management business. Battie

India is the third largest economy in Asia and has 1/6 people in the world.

For those foreign groups that can adapt to the changing business climate of the country, India market is promising.

Foreign telecom groups have invested billions of dollars in the country.

The world's largest retailer, WAL-MART (Sales), its French rival Carrefour and some other retail businesses have visited the India authorities, hoping to loosen the 51% investment ceiling for foreign investment.

According to Technopak, a consultancy based in New Delhi.

The Advisors provides only about 8% of the retail expenditure of urban residents in India in the "organized" retail industry.

Over the past 4 years, however, spending on modern retail stores has increased by 20% annually.

It is expected that the growth rate will be faster in the future.

The coalition government headed by the Congress Party made a decision to open the retail industry before the crucial parliamentary elections next year.

At present, a series of corruption scandals have affected the reputation of the coalition government.

The latest decision is expected to help curb high inflation, but may lead to strong opposition from millions of small traders in China, who regard foreign large chain supermarkets as a threat.

Analysts say India's government is opening up retail business because of the need to control food price inflation.

Over the past 12 months, food inflation has averaged two digits.

So far, India's food supply has been controlled by tens of millions of middlemen.