French retailer Carrefour SA has stated it is having issues with certain mandatory clauses in a recently published paper regarding foreign direct investment (FDI) in Indian retail, released by the country’s Department of Industrial Policy and Promotion.
Carrefour is keen to enter India in high-end retailing, and has pointed out that the clause seeking investments in agriculture infrastructure, if made into law, would limit foreign investment in local businesses.
Executive director of growth markets for Carrefour, Thierry Garnier, had previously said that once Carrefour sets up stores in India, it would look at establishing distribution centres in different cities, automatically leading to modernisation of agri-infrastructure in those areas.
Indian law currently allow only 51 percent FDI in single-brand retail while 100 percent FDI is allowed in cash and carry. However, there remains a blanket ban on multi-brand retail trading by foreign retailers.
(Source: The Hindu Business Line)