Why Global Retailers Are No More Optimistic About India?

The government does not want to take a chance to bring in some favorable changes in the FDI though it had severely affected Indian and foreign companies as well as the job losses.

Moreover, the government has tried to clarify the policy, which in turn gave rise to more complications and confusions.

Firstly the FDI policy makers themselves were confused as to what guildlines they need to implement for multi- brand, this was the time DIPP came in and bought in more complications.

Perhaps, Commerce and Industry Minister Anand Sharma has invited more than 20 Indian and foreign company’s CEOs to a meeting to clarify all the problems in the policy. Considering this, even the CEOs are looking forwards for a perfect solution. Some of the companies that are invited for the meeting include Kroger, Walgreens, Home Depot, Costco and Aldi. These retailers are some of the most leading companies in the world, but have not shown any interest in establishing their retail landscape in India.

Arvind Singhal, founder and chairman of retail consultancy Technopak Advisors, said that "if at 51 per cent FDI, there's no application yet, the government is unlikely to attract investors even at 74 per cent".

"The only condition should be to make foreign retailers source more from India for their international markets, a step that will help us earn higher export revenue," he added.

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