The Government of India has set the ball rolling for Foreign Direct Investment (FDI) in the multi-brand retail sector by releasing a discussion paper. Organized players who have been eying a larger share in Indian retail are once again buzzing with activity.
The discussion paper was issued in the first week of July 2010 by the Ministry of Commerce and Industry.
Earlier, the large players for multi-brand retail outlets had to roll-back or put their projects on hold after the government had intervened following large scale protests from the unorganized sector.
Presently, 51% FDI is allowed in only single brand retail outlets in India and multi-brand retail is restricted to cash and carry format.
The retail sector in India is mainly dominated by the family owned shops - also referred to as the mom-n-pop stores.