New Delhi: Trade minister Anand Sharma said on Friday that the government’s new policy to allow foreign supermarkets into the country would create 10 million jobs over three years, while not affecting smaller, domestic retailers.
Foreign companies investing more than 51% in Indian single-brand retail stores must source at least a third of their products from small domestic industries or village craftsmen, a government statement quoting the trade minister said on Friday.
Minister of commerce and industry Anand Sharma . Photo: Reuters
The government will have the first right to procure farm products in its new policy allowing foreign supermarkets in India, the trade minister said on Friday.
Anand Sharma also said fresh agricultural produce may be sold unbranded in foreign supermarket policy.
The government on Thursday approved 51% foreign direct investment (FDI) in the supermarket sector, paving the entry of firms such as Wal-Mart, Tesco and Carrefour into one of the world’s largest untapped markets.
Earlier there was an investment cap of 51%, which had deterred some major foreign companies from setting up shop in Asia’s third-largest economy.