Wal-Mart is to benefit from a new ruling by the Indian government that makes foreign direct investment 100 per cent legal. This means that the retailer will no longer be tied to joint business-to-business ventures with domestic companies when it wishes to do business in India, the International Business Times’s Indian online edition reports.
The legislation will mean, however, that Walmart must source its product materials, and make the products themselves, within India.
Tesco is another food giant that will most likely capitalise on the revised law.
"This decision by the government to allow up to 100 percent foreign direct investment through [the] FIPB [India’s Foreign Investment Promotion Board] in [the] marketing of food products produced and manufactured in India is very progressive and will help in reducing wastage, helping farm diversification and encourage industry to produce locally," said Krish Iyer, CEO of Wal-mart India, to the Economic Times.
"This far-reaching reform will benefit farmers, give impetus to domestic food processing industry and create vast employment opportunities."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
