Photo: Shahnawaz Sid via Flickr
An influx of foreign retail brands in India has made politicians realise the importance of retail as a macroeconomic indicator. In speaking with Times of India, Dayanidhi Maran, India’s textiles minister told the paper that the presence of foreign retailers would make sales figures more readily available to policymakers.Looking to the American model, Maran hoped that releasing sales data would help the government better understand supply, demand and investment trends and draw a better picture of India’s role as an exporter and consumer.
The retail industry employs 33.1 million people in the country. The government does not allow FDI in multi-brand retail while allowing for 51% in single-brand retail. This has been set up to protect local businesses and questions to modify it have met anger by opposition parties like the Bharaitya Janata Party (BJP).
Companies like Ikea have been ready to enter the Indian market but insist on 100% FDI. India’s decision to consider reforms and address sales data is promising for foreign retailers looking to tap the second fastest growing economy.
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