The retail outlook for India in the short term is a bit cloudy due to the recent developments on the policy front, according to a report by Deloitte Touche Tohmatsu Limited and Stores Media. In the long term, FDI in multi-brand retail would have a positive impact on economic growth of India, and it would benefit the world's leading retailers "as they continue to seek global opportunities beyond the Chinese market", the report said.

Elaborating on the government rollback of the "planned liberalisation" in retail, it said, "It is not clear whether this proposal will be offered again". In November, the Union Cabinet had decided to allow 51 percent FDI in multi-brand retail, but later kept the decision on abeyance due to political pressure.