The Indian cabinet, on 10 January, approved 100 percent foreign direct investment in single-brand retail through the automatic route. Earlier, foreign retailers looking to invest more than 49 percent required the government’s nod.
It will bring more resources, skilled manpower and technology to the retail sector, a V-Mart Retail Ltd spokesperson told BloombergQuint. The move will create its own market space, boosting the economy, the spokesperson said.
India still does not allow foreign direct investment in multi-brand retail, and Walmart and Metro operate in the cash-and-carry segment selling in bulk to traders and small retailers.
(The story first published on BloombergQuint. This is a developing story.)
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