The Indian Government has announced what would appear to be
final details of the changes to the laws affecting foreign
investment in the retail sector, paving the way for foreign
retailers selling single branded products to move into India
without having to partner with an Indian company. However the
reforms that would have allowed foreign-owned supermarkets to
operate have been shelved, at least for the time being.
Less than a month after suspending the implementation of various
reforms relating to direct foreign investment (FDI) in the retail
sector,the Indian Government has now confirmed that it will proceed
with its previously announced changes, but only in relation to the
FDI laws relating to single brand retailing. Prior to the changes
announced on 10 January 2012, foreign investors were permitted to
invest in the retail sector in India, provided that they were
involved in single brand retail, their equity stake in the relevant
investment company was no greater
