Delhi bans multibrand retail

Foreign companies are now barred from opening multibrand stores in Delhi.

That’s after the Arvind Kejriwal-ruled Delhi government decided to backflip on a pro foreign direct investment policy.

While FDI in multibrand retail has federal backing, its implementation depends on individual states.

“We agree that FDI in retail improves consumers’ choices to an extent but the Aam Aadmi Party (AAP) does not wish to increase unemployment… Delhi is not prepared for FDI,” said Kejriwal.

The move will prevent retailers like Tesco, which just received approval to initially invest $110 million in the country, from opening its own stores in the state. It has partnered with Tata Group’s Trent to build on Star Bazaar’s 16 store network in Maharashtra and Karnataka states with an expansion plan of opening three to five stores per year.

Meanwhile, US retail giant Walmart has ended its six-year old joint venture with Indian partner Bharti Enterprises due to the strictness of rules in foreign investment.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.