India'S Government Agreed To Deregulation Of Foreign Retailers' Rights To Cause Rebounding

It is reported that the India government announced in November 24th.

India, a major market for international retailers, is restricted by foreign equity restrictions and cannot enter the market. Because of the opposition of politicians and local businesses, foreign retailers' investment in India has been restricted for a long time. In the past, the India government stipulated that foreign manufacturers could have a 51% stake in a single brand store, such as Marks and Spencer, but foreign retailers could not operate multi brand hypermarkets, such as supermarkets.

However, foreign manufacturers can have wholesale and retail outlets operated by cash and pick up businesses, such as Wal-Mart, Metro Group and Tesco, which enter India in this mode.

The Minister of Commerce Anand Sharma said the plan will create 10 million jobs in the next 3 years, and the price of goods will drop due to the reform. The plan provides some conditions for foreign retailers investing in India. Investors must invest at least 100 million dollars, half of them should be used in infrastructure construction, and 30% products must be forced to be purchased from small and medium-sized enterprises, and shops can only be built in cities with a population of over one million.

Because India is a federal country, foreign manufacturers must have the consent of the province to open their stores and oppose foreign direct.

The American India chamber of Commerce welcomes the plan and believes that the drastic reform will attract the United States and other countries to invest actively in India.

Doug McMillon, President and executive director of Wal-Mart, believes that the change of policy is beneficial to India consumers, farmers and India government as a win win policy.

Those who agree with the deregulation of the regulations believe that foreign investment will improve India.