Retail FDI: The way forward

* The debate on FDI in multi-brand retail moves to the Rajya Sabha now. Debate starts on Thursday and voting expected on Friday

* If the retail FDI policy is safe after the Rajya Sabha vote, foreign chains will start strategizing on their India plans

* American supermarket chain Walmart is already in tieup with Bharti Enterprises for cash and carry or wholesale outlets in India and may extend the partnership for front-end retail too

* But, Walmart is currently investigating probable instances of corruption in India market, among others, which may delay its multi-brand plans. An Enforcement Directorate probe into earlier Walmart investment into Bharti, in alleged violation of FDI rules, makes it complex for the largest retail chain of the world

 

* UK’s Tesco is in an alliance with the Tata group for wholesale and backend functions, but has not announced any decision on multi-brand frontend retailing in India. But Tesco’s strategic review of its US chain, Fresh and Easy, resulting in closure of stores in America, is a pointer that it may not roll out stores in India in a hurry

* French chain Carrefour, which too has a cash and carry presence in India, has been on a slow mode. It may take time in unveiling India plans in multi-brand retail due to poor economy back home

* Go-ahead to retail FDI policy in Parliament may not translate into rush of foreign money into India, either from the companies which are already present in India in some form or the other or from new players, as they would wait for the general economy to improve and also for more states in India to allow foreign-owned chains