Indian government upset that it put so much on the line to open the door for businesses
San Francisco, CA -- (SBWIRE) -- 02/11/2013 -- It has been four months since the government was forced to handle the intensive opposition that allowed the foreign supermarkets to enter India. However, the government survived and it has not be the country has not received one investment proposal as the list of global retailers play a wait-and-watch game to find more clarity in regards to the conditions imposed upon the entry.
The delay in interest is beginning to bother the government as a whole, which gave up so much good will amongst its constituents and handled the severe risk of angering its citizens by taking on the measure to allow the companies. A top executive for the global retailer told ET that the recent meeting with a senior commerce and industry minister saw him asking when his firm would submit a proposal, he noted that he stated to the officer, “We have done our bit, when will you do yours?”
“The authorities seem to be under some kind of pressure, after going through so much to open this sector. But we need some clarifications before we start here,” noted the retail executive, who spoke under the condition of anonymity.
During September of 2012, the government gave way to foreign supermarkets to own up to 51% in local ventures, while imposing stiff local sourcing conditions, as well as investment restrictions on the companies.
Kishore Binyani, who owns India's largest homegrown retail house, The Future Group, noted that the riders have been preventing electronics, fashion garments, as well as other retailers from syncing up their plans in India. “How can they source 30% of their goods from small-scale industries? Or even invest $50 million in the backend over three years? Fashion or electronics does not require that kind of investment in the backend,” he said. Binyani is looking for foreign partners for the retail businesses.
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