The surprise move by UK-based Tesco to open multi-brand retail stores in India with an initial investment of USD110 million is expected to change the contours of the sector next year. Experts say the brand’s entry into the country, more than a year after the government relaxed the multi-brand retail policy, may prompt those sitting on the fence to invest, too.
This is quite a contrast to what pundits have been saying so far. Across the sector, the standard forecast was no foreign direct investment (FDI) would be seen in multi-brand retail until the 2014 general elections. Now that one player has moved forward, others may follow, once they find Indian partners.
Recently, Walmart called off its association with Bharti, while Carrefour is still without an Indian partner. Japanese retail chain Aeon is focused on the India market as well and may invest in 2014.
(Source: Business Standard )