The UKIBC held a high level roundtable discussion on the implications for UK businesses of the changes to FDI rules in Indian retail. Although the Indian government suspended its earlier decision to open multiband retail to 51% FDI, it raised the permitted FDI in single brand retail from 51% to 100%, after announcing a shift in FDI policy back in November.

Participating companies included Kingfisher, Pavers,Pizza Express, Tesco, The Frozen Yogurt Company, United Biscuits, Daks, Benoy, Farsan Foods, APCO Worldwide, Ernst and Young, Eversheds, Penningtons Solicitors LLP, Podtime and Standard Chartered Bank.

While the discussion agreed that the single brand reform was a significant step forward, the strong view was that opening FDI in multibrand retail would be very good for India, in terms of job creation, consumer choice, inflation control, lower costs, greater efficiency and significantly improved food supply chains.

A number of insightful observations were made by the group on the opportunities and future challenges this change in policy would bring to the retail sector. These included insights on the implications and realities of market research, finances, repatriating profits, taxation, logistics, importing & exporting, and real estate.

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