The Indian Government has approved 100% FDI in single-brand retail through the automatic route. Earlier, foreign retailers looking to invest more than 49% required the Government’s approval. The move will bring more resources, skilled manpower and technology to the retail sector. The move will create its own market space, boosting the economy.
India still does not allow FDI in multi-brand retail, and the multi-brand retail stores like Walmart and Metro AG operate in the cash-and-carry segment, selling in bulk to traders and small retailers.
Shares of retailers jumped after the government’s announcement in a flat Mumbai market.
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