Pause In Retail FDI Reform An Unwelcome Signal

摘要

BMI View: Refecting the lack of policy coherence and clarity within nthe Indian National Congress (INC)-led coalition, the government nhas shelved its long-awaited (and much-hyped) reform proposal nto allow foreign direct investment in multi-brand retail. From our nperspective, the government's retail policy suspension has sent out na negative message to foreign investors about the lack of stability in nthe country's policy-making process, potentially deterring investment nfrom foreign retailers even if the legislation were to be eventually npassed. Nonetheless, a weakening economy could potentially cata-nlyse a more meaningful implementation of key legislation such as nallowing FDI in multi-brand retail.