The air of uncertainty, which still looms large over the economic condition of the country, has raised several questions regarding the nation’s image, especially as a business destination amid the foreign investors.

Though the incumbent United Progressive Alliance (UPA) government has opened its scope in a multitude of areas, in a bid to gain confidence on international level, the issue of retail remains a bone of contention of sorts, mainly due to the stance of its allies and the new government will have to look into this at the earliest.

As a result, instead of allowing 51 percent FDI in multi-brand retail and easing the rules, no major brand is still willing to make its way in India. Even the principal Opposition outfit – Bharatiya Janata Party (BJP) has dealt with the issue in its manifesto in a very nonchalant manner, which is bound to put the investors in a fix.

With the swarm of support BJP is receiving from across the nation, it’s widely expected to make a return at the Centre after a decade. Though the corporate sector is excited over this particular prospect, the saffron party’s laidback attitude on FDI has made the foreign retail companies hold a re-discussion on business ties with India.

Two of the world’s biggest retail companies – Walmart and Carrefour, based on the recent developments in India, have made it clear that they don’t see any future in this South Asian nation. And may be, it’s mainly due to this very reason, they have stared wrapping up their businesses in India.

After Walmart, French giant Carrefour is not selling its retail business and they have already started holding talks with some of the India-based companies.

According to experts, if both the companies make their way back from India, it would send a wrong message to the investors’ community across the globe. And it’s impact would be seen in the other sectors as well, where there is a scope of possible foreign investment.

After telecom, retail is seen as one of the major avenues, which can take in investments and there is a very scope left for telecom anymore. Besides, the foreign investors are no more interested in other sectors as well.

Apart from that, there is no uniformity over allowing avenues for foreign investment in the defence sector.

After the declaration of results on May 16, the new government needs huge foreign investment in infrastructure to accelerate growth rate. It will also have to make effective policies accordingly.


Latest News  from Business News Desk