Although the current foreign direct investment policy permits overseas players to hold 51% stake in an Indian retail company, the BJP in its election manifesto had opposed foreign investment in the retail segment. Sources said the government is considering permitting foreign supermarket players to open retail stores but only for sale of ‘Made in India’ products. Although the current foreign direct investment (FDI) policy permits overseas players to hold 51% stake in an Indian retail company, the Bharatiya Janata Party (BJP) in its election manifesto had opposed foreign investment in the retail segment. So far, only one foreign player, Tesco, has received approval for opening stores under the multi-brand retail policy. The move assume significance as the government is also expected to announce relaxations in the FDI policy in more sectors, including single brand retail.

Source: Mint March 18, 2017 12:11 UTC