Faced with a subdued economic prognosis, in September the government introduced a law that will relax regulations for foreign direct investment (FDI) and ease the business environment for foreign entrants to the retail sector. The politically sensitive ruling, issued on September 20 by the Department of Industrial Policy and Promotion, allows for 51% FDI in multi-brand retailing and comes swiftly on the heels of a September 14 cabinet ruling that relaxes the sourcing norms for foreign retailers investing beyond 51%.
