‘Cabinet may approve FDI in multi-brand retail by August’

‘Cabinet may approve FDI in multi-brand retail by August’

Mumbai: The cabinet is expected to approve a proposal to open up the multi-brand retail sector in Asia’s third-largest economy, allowing global chains to enter by next March, the Times of India reported on Friday citing government sources.

There will be riders such as areas where multinationals can enter and state governments will decide whether foreign chains are welcome or not, the newspaper said.

Global retailers such as Wal-Mart Stores, Carrefour, Tesco and Metro AG have long sought greater access to a fast-growing but restrictive Indian retail sector that is dominated by mom-and-pop operators.

India currently allows 51% FDI in single-brand retail and 100% in wholesale cash-and-carry operations.

The panel will also discuss a plan to mandate 25-30% sourcing from small and medium enterprises and intends to allow these chains to operate in large cities only, the paper said.