The Indian Bharatiya Janata Party manifesto decision to oppose foreign direct investment in supermarkets has made the sector more wary. The United Progressive Alliance’s policy to allow 51 percent FDI in multi-brand retail in September 2012 could be reversed if the BJP comes to power at the Centre.
International supermarket chains like Walmart and Carrefour had already stopped hiring for their Indian businesses and were just about spending on renovation and repair to keep existing facilities in shape, sources said.
For the UK-based Tesco, which has a deal with the Tatas to open supermarkets in Karnataka and Maharashtra, a lawyer said provisions under international agreements would protect the company. Tesco said it would not comment on the matter at this point. French retailer Carrefour, believed to be in talks with Indian chains like Bharti, also refused to comment. Walmart, the world’s largest retailer that recently broke up with Bharti, did not reply to queries.
(Source: Business Standard )