Bharti Wal-mart, the joint venture between the world's largest retailer, US giant Wal-Mart, and Indian business group Bharti, has said it is optimistic that India will one day allow foreign direct investment (FDI) in the retail sector.
'We are optimistic that India's progressive government will move ahead with its policies of economic and social reforms, including allowing FDI investment in front-end retail,' Bharti Wal-Mart CEO Raj Jain said.
'This would greatly contribute to India's growth story by creating employment, strengthening supply chain efficiencies, enhancing earnings of farmers and helping families to save money so they can live better,' Mr Jain said.
Indian law currently allows 51 per cent foreign investment in single-brand retail, but none for multi-brand retailers, the Press Trust of India reported.
Wal-Mart's current agreement with the Sunil Mittal-led Bharti group deals with wholesale cash-and-carry and back-end supply chain management operations.
Mr Jain credited Indian finance minister Pranab Mukherjee's budget speech as the source of his optimism.
'Government also intends to make the FDI policy user-friendly by consolidating all prior regulations and guidelines into one comprehensive document. This would enhance clarity and predictability of our FDI policy to foreign investors,' Mr Mukherjee said.
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