A bigger bang for retail reform

An opportune time to scrap the fine distinctions for FDI

The government’s approval for Amazon’s entry into food retailing, the first under the policy allowing 100 per cent foreign direct investment (FDI) in food retail chains, could be a good opportunity to scrap the many fine distinctions and confusing conditions that prevail in the retail investment policy as a whole. Big-ticket retail FDI has the potential to significantly expand the market for goods and services, but the incremental pace of reform has meant that India has been unable to maximise the opportunity. This incrementalism was initially on account of some energetic lobbying from domestic retailers. 

Thus, in 2006, the United