Starbucks And Ikea Can Open Stores In India After The Country Abandoned An Ownership Rule

Starbucks India

Photo: Premshree Pillai / Flickr

Single-brand foreign retailers like Starbucks and Ikea got the green light to open wholly owned stores in India, Bloomberg reported.Following a move to allow individual foreign investors to play the Indian stock market, the decision is an attempt by the United Progressive Alliance (UPA) government to take what it can when it comes to economic reforms.

In November, the government was forced to freeze a similar decision to allow multibrand retailers like Walmart to own majority (51 per cent) stakes in India-based stores.

Read more on GlobalPost: The end of Manmohanomics in India?

The snafu prompted a raft of criticisms of Manmohan Singh’s failure to push forward with moves to liberalize the economy, and the Congress Party’s supposed mishandling of its coalition partners in the UPA.

It’s not the big bang that investors have been awaiting since Singh took office, admittedly, but even two steps forward and one step back is better than the paralysis that has gripped the government since the anti-corruption stir began this summer.

Read more on GlobalPost: In-depth series on India’s rise in the 21st century

This post originally appeared at GlobalPost.

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