India’s retail sector has witnessed a surge in investment since the government announced a number of changes on Friday (14 September) that make way for an influx of foreign capital.
According to a Reuters report, Pantaloon Retail, partly owned by India's biggest retailer Future Group, has grown 18.9 percent since gaining 7.1 percent on Friday on speculation the government was to announce the FDI reforms.
Meanwhile, property developer DLF saw gains of 6.9 percent, and mall operator Phoenix Mills increased 9.6 percent on hopes further investment in retail would increase demand for property.
According to a Bloomberg report, of the global retailers lining up to enter India’s multi-brand retail sector Walmart was best placed to take advantage of the opportunities present with competitors Carrefour and Tesco both battling falling profits.
Through a joint venture with Bharti Retail, Walmart effectively has a network of 195 stores in India it could choose to operate. This, however, will be dependant on which states allow FDI in multi-brand retail.
Wal-Mart India president Raj Jain said in an e-mailed statement that the group was keen to invest further in India. “We are willing and able to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation,” he said.
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