FDI in Retail
In September 2012, the Indian government declared the opening of Foreign Direct Investment (FDI) in multi-brand retail, subject to approvals from states. Economists and the market welcomed this decision but it generated a lot of protests. The central government’s coalition structure was disturbed as a result of this decision. The FDI reforms were notified by the union government for single as well as multi-brand retail, thus making it effective by law.
In December 2012, 51% FDI was permitted in multi-brand retail in the country. In spite of heavy chaos in the parliament from the opposition (at that time the NDA and the left parties), the approval from parliament was obtained. Certain states would allow foreign supermarkets like Tesco, Walmart and Carrefour to open in their regions but some states would not.