Government to allow 51% FDI in organised multi-brand retail-- Angel Broking,

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Government to allow 51% FDI in organised multi-brand retail
The committee of secretaries have given an approval in principle for allowing up to 51%
FDI in multi-brand retail. This move was expected for quite a while now by foreign retail
majors Walmart and Carrefour.
With the FDI open, the industry will be able to fund large-scale expansions, which will give
it a much-needed boost. The move will bring in the required funds from all kinds of foreign
investors into organised retail, which was till date hindered for funds. Once the FDI is
cleared, the move would offer Indian organised retail companies the option to sell a part
of their stake to foreign companies, enabling them to become debt-free. Companies such
as Future Group is expecting its home and electronics segment to gain immensely if it
partners with a foreign company and expects this move to help the sector to open up and
grow at a faster pace going ahead. This whole move is enormously going to benefit the
organised retail as a whole and, thus, we believe there can be a positive movement in all
retail stocks today.