FDI with conditions

The government is likely to allow global supermarkets such as Walmart, Tesco and Carrefour to set up deep discount stores in India, but with a few conditions. HT reports.

The government is likely to allow global supermarkets such as Walmart, Tesco and Carrefour to set up deep discount stores in India, but with a few conditions.

The department of industrial policy and promotion has moved a formal proposal to allow up to 51% FDI in multi-brand retail and 100% in single-brand retail, which most ministries and departments have now agreed with.

According to the proposed policy, at least 50% of the total FDI should be in back-end infrastructure.

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Large deep discount stores will be allowed to be set up only in cities with a population of more than 10 lakh and only in those states that allow FDI in multi-brand retail.