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    November 24, 2011

India Opens Retail Sector to Foreign Supermarkets

   VOA News
   Customers shop at a Best Price Modern Wholesale store, a joint venture
   of WalMart Stores Inc. and Bharti Enterprises, at Zirakpur, India, Nov.
   24, 2011.
   Photo: REUTERS
   Customers shop at a Best Price Modern Wholesale store, a joint venture
   of WalMart Stores Inc. and Bharti Enterprises, at Zirakpur, India, Nov.
   24, 2011.

   India's Cabinet has approved a plan to open up the country's $450
   billion retail sector to foreign supermarkets, a reform that could
   unclog supply bottlenecks that have kept inflation high.
   Ministers on Thursday gave the green light to a proposal to allow
   international firms to hold a 51 percent stake in multi-brand
   retailers. The Cabinet also decided to raise the cap on foreign
   investment in single-brand retailing to 100 percent from 51 percent.
   Foreign retail giants like U.S.-based WalMart and France-based
   Carrefour have lobbied for years to be able to sell directly to
   consumers in India. Until now, the companies have only been able to run
   wholesale stores that supply small businesses.
   But critics, including the country's main opposition Bharatiya Janata
   Party, say the proposal would cause job losses and drive smaller stores
   out of business.
   India's Commerce Minister Anand Sharma said the details of the proposal
   will be discussed further in parliament on Friday.

   Some information for this report was provided by AP, AFP and Reuters.

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