Bloomberg Businessweek reports that India has eased foreign investment restrictions, a move that it seen as allowing companies such as Walmart and Tesco to open stores there.
According to the piece, "Rules covering sourcing, infrastructure investment and store location have been amended ... The government is loosening rules to attract overseas investors to stem a ballooning current-account deficit and a weakening rupee. While the nation changed laws in September to allow foreign retailers to own majority stakes in stores selling multiple brands, no companies have sought such licenses yet ... foreign investment up to 49 percent will be now allowed under the automatic route in sectors including petroleum and natural gas, commodity and power exchanges as well as in stock exchanges."
According to the piece, "Rules covering sourcing, infrastructure investment and store location have been amended ... The government is loosening rules to attract overseas investors to stem a ballooning current-account deficit and a weakening rupee. While the nation changed laws in September to allow foreign retailers to own majority stakes in stores selling multiple brands, no companies have sought such licenses yet ... foreign investment up to 49 percent will be now allowed under the automatic route in sectors including petroleum and natural gas, commodity and power exchanges as well as in stock exchanges."
- KC's View:
