The government is likely to allow global supermarkets such as Walmart, Tesco and Carrefour to set up deep discount stores in India, but with a few conditions.
The department of industrial policy and promotion has moved a formal proposal to allow up to 51% FDI in multi-brand retail and 100% in single-brand retail, which most ministries and departments have now agreed with.
According to the proposed policy, at least 50% of the total FDI should be in back-end infrastructure.
Large deep discount stores will be allowed to be set up only in cities with a population of more than 10 lakh and only in those states that allow FDI in multi-brand retail.
CAclubindia
