Why Global Retailers Are No More Optimistic About India?

Though a 74 percent hike is not going to bring much difference, foreign retailers are guessing that the government is taking wrong steps to attract foreign capital.

From this it’s very clear that the government is desperate to hike the FDI limit as the general elections are nearing and they want to pull the economy by the capital they will get from foreign retailers.

Prime Minister Manmohan Singh soon will be holding a meeting with the committee to discuss FDI issues. Even the Empowered Group of Ministers is concerned about the whole FDI issue.

The main problem is the blurred clarification given by the government on multi- brand policy guild lines issued by the Department of Industrial Policy & Promotion (DIPP) on backend infrastructure.

Most of the international and domestic business chains said that their business pattern does not work according to the governments’ clarifications. Infact many people who are into the industry said they are annoyed of the strict rules that were attached with the multi-brand retail policy, but in the case of single-brand retail there are no much changes.

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