By reopening the case regarding FDI in multi-brand retailing, government has shown its
interest to take the case forward with caution.
Looking forward for the benefits of FDI in the back-end infrastructure, the government
is sanguine to open its gates for the multi-brand retail sector. Currently, there is no
provision of FDI in multi-brand; 51 per cent is allowed for single retail brand and 100 per
cent in wholesale trade.
Some companies that are likely to benefit from this decision are Pantaloons Retail,
Provogue, Shoppers Stop, and Trent. Also, the various companies which can divert their
routes to India include Metro from Germany, Wal-Mart, and Best Buy etc.
The likely course of action by the government is allowing FDI in consumer electronics
and sports goods retail in the first phase. In the second phase, the percentage of FDI may
increase from 51 per cent to 100 per cent in single brand. After assessing this calibrated
approach, the government would take a step further allowing FDI in the multi-brand