Retail in Asia

In Markets

Some Indian states may block retail FDI

India’s move to open multi-brand retail to foreign direct investment (FDI) may run into rough weather, with key Bharatiya Janata Party (BJP)-ruled states, as well as some constituent parties of the ruling United Progressive Alliance (UPA), rejecting or being ambivalent towards the proposed policy.

That is because the proposed policy, while providing for up to 51 percent FDI in multi-brand retail, puts the onus of giving permission for setting up such stores on states that accept the rules. Also, the state governments will be asked to put in place a framework to monitor compliance with the conditions.