India Relaxes Retail Investment Regulations

stay India After an important government committee approved the relaxation of foreign investment regulations, India's multi brand retail industry will greatly relax its overseas investment. It is reported that India's cabinet secretarial Committee agrees that foreign retailers can obtain 51% of the local multi brand retail industry.

According to the India business website, the approval will not immediately open the door to big retailers such as WAL-MART (Wal-Mart), Carrefour (Carrefour) and Tesco (Tesco), because any deregulation will still have to be approved by the Ministry of Commerce of India and the cabinet of India.

At present, India allows only a single brand to open up foreign capital and can hold 51% retail equity, such as Martha's department store. If cash and carry outlets is used as a wholesale business, the shareholding of multinational companies will reach 100%, such as WAL-MART, Tesco and Metro Group, which currently operate wholesale markets in India.

Over the years, India has been debating whether foreign capital should deregulation of more retail rights. A report issued by the Ministry of Finance in India in 2009 said that it should be relaxed.

At the beginning of this year, the India government task force also proposed relaxing this provision as part of efforts to combat high inflation and reduce the difference between production price and retail price.

Some foreign countries Retailer Has been in India layout, such as WAL-MART and India Bharti Retail signed a cooperation agreement, the operation of self paid hypermarkets; Metro operates 6 hypermarket stores; and Tesco also signed a cooperation agreement with India Tata group in 2008 to operate a cash store.

Retail business in India in the past 6 months equity market Analysis shows that the largest retailer Pantaloon shares (highest and lowest) rose 51.04%, closing at 335.30 rupees per share in July 29th; meanwhile, another important retailer, Shopper 's Stop share price (highest and lowest), rose 64.80% in July 29th, and 394.15 India rupees per share in July 29th.