In today’s (December 7, 2011) Times of India, the following article reports on the suspension of a plan to expand Foreign Direct Investment (FDI) restrictions in India.  Such a relaxation would have had profound effects for non –Indian retailers seeking to enter and expand in the Indian market.  Concomitantly, it also has had a profound political effect in India, given the predominance of small, local retailers in the Indian economy.  This issue actually stalled the Indian government, until the announcement today that the issue would be suspended for now.  See the article at this URL:

http://timesofindia.indiatimes.com/india/FDI-row-Centre-finally-shuts-door-on-retail-FDI/articleshow/11025448.cms

I just arrived in Delhi last night and am all the more interested to see how this developing story is reflected in the company visits we will begin tomorrow.  Next week (Dec. 14), we will be visiting executives at The Future Group, a major Indian retail group; by then, this story will no doubt have further developed, but regardless, it should be a lively and extremely informative discussion.  I’ll continue posting on this as we travel through India.

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