Tesco is reportedly set to conclude negotiations with Indian group Bharti Enterprises on October 10 - a move that could bring the first overseas grocery chain to India.

The Indian firm, which already supplies fresh produce for Tesco, could become a franchise for the supermarket.

Bharti chairman and managing director Sunil Mittal said: “Planning is underway and a team is carrying out extensive research and is testing various models.

“We had a 90-day time frame for talks and that ends on October 10.”

The rollout will include large and small outlets, as well as hypermarkets, starting in and around New Delhi and the Punjab city of Ludhiana.

India has so far allowed retailers that sell a single brand 51 per cent foreign direct investment. But global retail chains such as Wal-Mart are still banned from such operations.

The only way that global firms can open stores is through franchise deals with Indian partners.

But chain stores make up just two per cent of sector thought to worth more than an annual $200 billion.

The majority of the Indian retail market is still made up of independent businesses.

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