Retail FDI May Be Allowed in India with Back-End Investment

Authorities are said to be considering foreign direct investment in multi-brand retail if foreign retailers invest heavily on back-end infrastructure like warehousing and cold storage.

The Department of Industrial Policy and Promotion paper on FDI in retail may include a provision that requires global retailers to put a significant part of their investment in the back-end infrastructure.

Currently, India restricts foreign investment in the multi-brand retail sector to protect local industries and only allows foreign brands in the wholesale trade and single-brand, luxury retail.

Rising food prices may have influenced authorities to reconsider current retail FDI laws.

---