Foreign Direct Investment in Retail (FDI)

The government of India announced the opening of FDI in multi-brand retail, subject to approvals by individual states on 14 September 2012. This decision was welcomed by economists[and the markets, but caused protests and an upheaval in India’s central government’s political coalition structure. On 20 September 2012, the Government of India formally notified the FDI reforms for single and multi brand retail, thereby making it effective under Indian law. On 7 December 2012, the Government of India allowed 51% FDI in multi-brand retail in India. The government managed to get the approval of multi-brand retail in the parliament despite heavy uproar from the opposition (the NDA and leftist parties). Some states will allow foreign supermarkets like Walmart, Tesco and Carrefour to open while other states will not. The concept was in the news recently. To know more click the above link titled ‘Related News’.

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