Tesco Entry Rumours Heat Up Indian Retail

September 2006 | Industry News

In recent weeks the Indian retail sector has been buzzing with the gossip that UK retail giant Tesco may finally enter the country's mass grocery retail (MGR) market. Currently, foreign direct investment (FDI) into Indian retail is restricted by government legislation which was established in order to protect the country's many small independent retailers who make up the majority of the country's food retailers. However, the government has acknowledged the need to open up this sector in order to improve efficiency and has therefore allowed for 51% foreign investment in food retail. International chains are also permitted to appoint franchisees

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