wordpress blog stats
Connect with us

Hi, what are you looking for?

, , , ,

India Approves 51% FDI In Multi-Brand Retail

The Indian government has approved a 51% FDI in multi-brand retail, allowing foreign retail players like WalMart, Tesco, and Carrefour to establish retail stores with local partners, reports NDTV. This also means that e-commerce players like Amazon would be able to operate full fledged online stores.

Currently, Amazon operates Junglee.com,  an advertising service for product ads, acting as an aggregator for Indian online retailers, pitting retailer against retailer for similar products. So it doesn’t sell products directly. Walmart was also believed to have some plans for online retail, but it was reported that it had disbanded its e-commerce team.

Conditions: However, the decision comes with a rider that multi-brand retail investment has to be approved by the state where the entity intends to set shop. We’re not sure how it will apply to e-commerce players. We assume that they’d have to set-up operations in states that approve it. According to Anand Sharma, Union Cabinet Minister in charge of Commerce and Industry and Textiles, states like Andhra Pradesh, Assam, Haryana, Delhi, Uttarakhand, Rajasthan, Manipur, J&K are inclined towards adopting FDI in multibrand FDI (via – Firstpost).

There are other conditions that International players need to fulfil:  the minimum FDI limit is $100 million, companies have to invest half of that amount  in infrastructure like cold-storage chains and warehouses, and that at least  30% of the goods to be sold will need to be sourced from local partners. The government also allows FDI in single retail with some conditions, which makes it unviable for international single brand chains like Ikea to set up operations.

Although the union cabinet had approved multi-brand FDI in November 2011, the decision on the final implementation was pending as its allies and other political parties were in opposition of the proposal.

Advertisement. Scroll to continue reading.

Note that the Indian government already allows 100% FDI in business to business e-commerce ventures, and cash and carry wholesale trading.

Lauding the government’s decision, Bharti, which operates a cash and carry venture with Wallmart has issued a statement:

Rajan Bharti Mittal, Vice-Chairman and Managing Director of Bharti Enterprises said, “This is a landmark decision in India’s economic reforms process. Development of organised retail in India will bring immense benefits to stakeholders across the value chain – from farmers to small manufacturers and above all to consumers. Enhanced investment in the sector can further the cause of employment, particularly amongst youth. In addition, this decision will open the doors for much needed technology and investments to develop the entire retail ecosystem in the country.  Bharti Walmart’s Cash & Carry venture is already sourcing fresh produce directly from thousands of farmers as well as other merchandise from local manufacturers, thereby adding to the local economy’s growth and delivering immense value benefit to its customers such as kirana stores and other institutions.”

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.


When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.


In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...


By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ