Relaxation Of India’s Rules On Foreign Retail Ownership Could Energize Country’s Economy

The Indian government has agreed for the first time to allow multi-brand foreign retailers to own up to 51 percent of joint ventures in the country, a move that opens up one of the largest – 1.2 billion consumers and $400 billion – retail markets in the world. The government also loosened rules for single-brand retailers, allowing companies like Nike to own 100 percent of their businesses in India, instead of just 51 percent. The rule changes are likely to spur an influx of retailers, the Wall Street Journal reports, and have "the potential to transform not only the retailing landscape but also the nation's ailing infrastructure.” It is also likely to jump start the country’s sluggish economy.