India Opens Huge Retail Sector To Foreign Investment

Posted September 14th, 2012 at 10:35 am (UTC-5)
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India's government is opening its huge retail market to foreign retailers such as Wal-Mart, Tesco, and Carrefour.

Friday's action allows foreign firms to own a majority stake in stores that sell more than one brand.

Opponents of the action said it would hurt India's many very small retailers and cost many jobs.

Supporters say foreign investment could modernize the sector, improve food quality, and reduce food prices.

The plan also allows foreign airlines to invest in Indian air carriers.

India's economic growth is slowing, and worries about the nation's credit rating and inflation are rising.