Wal-Mart Stores Inc. Chief Executive Officer Michael Duke said he is “optimistic” that overseas companies will be allowed to invest in India’s retail industry.
Wal-Mart, the world’s largest retailer, and rivals including Carrefour SA and Tesco Plc are pushing India’s government to allow foreign investment after the trade ministry invited views from the industry on removing the restriction. The government’s discussion paper said in July that allowing foreign investment in retail will lower prices and benefit farmers.
“The opening of dialogue the ministry has initiated is very productive, and I view that as progress,” Duke said at a press conference in New Delhi yesterday. Easing the rules on foreign investment in retail will help curb inflation and may lead to the creation of 3 million jobs in India, he said today.
India is the third most attractive retail market for global retailers among the thirty largest emerging markets, U.S. consulting group AT Kearney said in a June report. The growing middle class, expanding economy and increasingly brand-conscious consumers will help push retail sales up by 35 percent over the next three years, the consultant said.
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