Eleven states have agreed to allow foreign direct investment (FDI) in retail in India, according to the a statement released by the central government today.
The states that have agreed to allow 51% FDI in retail are Delhi, Haryana, Maharashtra, Rajasthan, Andhra Pradesh, Assam, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Assam, Manipur and Daman & Diu and Dadra & Nagar Haveli.
States that have not agreed to allow FDI in retail include lucrative markets like Karnataka, Kerala, Gujarat and Tamil Nadu. Uttar Pradesh and Bihar have also not allowed FDI in retail.
Himachal Pradesh is the latest state to join the list of those that have agreed to let foreign companies own majority control in retail chains.
Government of India had allowed foreign direct investment in retail on 5 April 2013 through a circular.
None of the global biggies, such as Wal-Mart, have yet unveiled plans to invest in multi-brand retail in India. However, Swedish Furniture retailer Ikea has proposed, and got approval, to invest $1.95 billion, under the new policy that also allows 100% foreign investment in single-brand retail chains.