The growing purchasing power of Indian consumers is attracting a lot of foreign giants into the country. Recent addition is the investment made by Tesco, the British retail major, in multi brand retail trading, as informed by the commerce and industry minister Nirmala Sitharaman.
Going a few years back, Tesco was the first global retailer to apply for multi-brand retailing after the government allowed 51 per cent FDI in the segment in September 2012. It already has announced formation of an equal joint venture with Tata group company Trent by picking up 50 per cent stake in Trent Hypermarket Ltd (THL) during March last year.
Currently, 51 per cent FDI is permitted in multi-brand retail. So far the BJP elected government had opposed foreign direct investment (FDI) in multi-brand retail in its manifesto. However, the dynamic global market scenario and increasing India’s visibility with growing per capita income levels might change the situation.
In my view, increasing the FDI limits in the multi-brand retail comes with its own sets of pro’s and con’s however, I would like to get your opinion of how you view this to change the face of retail trade in India in the coming future? It is a long running debate but each opinion matters.