When 25-year-old Richa Chitravanshi, a sales manager with a Mumbai-based private bank, wanted to buy a sleek cell phone for her soon to be mother-in-law for Diwali, she was struck by the lack of options available to her. It wasn’t to do with a lack of variety; rather she found a dearth in the number of places to buy from. “I had to go to at least five different outlets before I could find what I was looking for.” She wishes for a single store where she can size up various brands and save time as well. “After all, I want to be sure I am getting the best deal in that price category,” she explains.

With a booming economy, Indians’ aspiration levels too have risen. More and more Indians are hitting foreign shores. They come back with seamless shopping experiences that they find missing in India. But the situation may soon change. India may soon be home to destination stores similar to those in the United States.

Last week, Union commerce and industry minister Kamal Nath, while speaking at The Indian Express-hosted Idea Exchange, expressed the Government’s positive attitude to foreign direct investment (FDI) in multi-brand retail in a “segmented” manner.

“The Government may undertake segmentation (in multi-brand retailing) so that sectors like electronics, apparel and footwear, which do not affect retailers in the unorganised sector, can be opened gradually,” he said.

FDI in Retail

Currently, the Government’s foreign direct investment policy does not permit FDI in the retail trade, except in single-brand retail where FDI of up to 51 per cent is allowed with certain riders and prior Government approval. The riders are:-

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