Confusing rules deter foreign supermarkets from India
MUMBAI (AFP) - A year since India reduced foreign investment barriers to its retail sector to spur flagging economic growth, confusing rules and political uncertainty are keeping overseas supermarket giants away, analysts say.
In September 2012, the government allowed foreign stores to set up 51-per cent-owned joint ventures in India which they had eyed for years as a potentially lucrative market.
But so far there has been no rush to open outlets, despite further easing of entry barriers in August.
"There's no comprehensive consolidated government paper on Foreign Direct Investment (FDI) - just updates and statements. It's not a good sign," said retail analyst Anil Talreja of global consultancy Deloitte.