Realign FDI in retail: Existing policy is plagued with convoluted riders

The impact of these convoluted riders is visible in the poor response by global retail investment in one of the world's largest markets

The impending Walmart-Flipkart deal provides the government with a useful opportunity to realign its retail policies to offer an overarching enabling environment for foreign direct investment (FDI). Indeed, the tie-up between the world’s largest retailer and India’s largest online retailer points to the urgent need for policymakers to approach brick-and-mortar retail and online commerce in a seamless manner and focus on maximising the value chain for investors and consumers. The distinctions between cash-and-carry and single-brand retail, in both of which 100 per cent FDI is permitted, and multi-brand retail, in which foreign investors can take a 51 per cent stake,