India'S Open Retail Market &Nbsp; Local Governments Strongly Oppose It.

India central government lets foreign retailers penetrate

Some analysts pointed out that next year's crucial state legislature elections and the 2014 national parliamentary elections are coming.

In addition to the opposition party, even the main coalition parties of the Congress party are strongly opposed to letting foreign retailers enter the domestic market.

Bha-ratiya Janata Party, the main opposition party in India, said it would force Congress to vote on the new reform policy.

The India government announced last week that it would open its retail market of $450 billion (about 586 billion yuan) to overseas retailers, allowing overseas retailers to sell a variety of brand products to 51% of the enterprises in this field in India.

This is one of the boldest economic reforms of the India authorities. This decision will pave the way for India, the world's largest retail group, such as WAL-MART (Wal-mart) and Tesco (Tesco).

At present, these foreign companies can only be wholesale in India, and can not sell directly to customers.

Opponents believe that this will damage the interests of local SMEs and family based retail stores.

Supporters say this can create jobs and drive the economy.

India times: global retailers are waiting and waiting mode

The India times's headline "global retailers are waiting and waiting mode".

Global retail giants including IKEA (IKEA), WAL-MART and Carrefour are studying the details of a retail sector's foreign direct investment (FDI) announced by the India government. These retail giants hope to find a gold nugget from Greece.

At the same time, while closely observing developments after the issuance of investment rules, these companies are still concentrating on developing their current business in India, such as IKEA's procurement business and WAL-MART and Carrefour's cash on delivery business.

In welcoming the India government's rules on allowing 100% overseas direct investment, IKEA said: "we will continue to study the details of the India government's decision in the next few days. We will announce more information about the plan to establish retail operations in the near future.

The Swedish furniture retailer said in an e-mail statement that India is a strong and growing market for IKEA.

Although Carrefour, a French multi brand retailer, has entered the India market through cash on hand business, the company is also closely monitoring the development of the event.

"Carrefour will continue to pay attention to the finalization of the new rules and will continue to develop our cash on hand business," the company said in a statement.

Carrefour currently has two cash self retailing stores in India.