FDI in Indian Retail: The Big Benefits Will Come Tomorrow, Not Today

The Indian government recently announced a slew of reforms, including allowing foreign direct investment (FDI) in multi-brand retail up to a level of 51%. A policy requiring that single-brand retail multinationals source 30% of products and materials from small businesses and craftsmen was changed to mandating that the same amount come from Indian firms. In this Knowledge@Wharton op-ed, Mack Center Senior Fellow Ravi Aron argues that opening up FDI will not only lead to a greater variety of products for sale and increased consumer choice, but also penetrate deep into the hinterland of Indian economic activity and do much to improve the country’s “shunned sectors” — infrastructure and logistics.

Read the full op-ed here.