India has liberalized its markets dramatically — but not completely. Major Indian retailers are frantically building American-style supermarkets, department stores, and discount stores and European-style hypermarkets (combined supermarkets and department or discount stores) before the foreign competition comes in. From Retailers in India Play Catch-Up:
“In January, India took the first step in opening retailing to foreign investors,” the authors write. “The government now allows overseas businesses to own 51 percent of companies that sell products under a single brand.”In other words, a company like Nike could open a store selling Nike-branded goods.
Retailers like Wal-Mart that provide merchandise made by different manufacturers are still banned, but Indian retailers expect that to change, despite the opposition of local shops.