16 Sep 2012

India opens door to global supermarket chains

8:45 am on 16 September 2012

The Indian government has decided to allow foreign supermarket chains to enter its multi-billion-dollar retail market in an apparent attempt to revive India's sluggish economy.

The move will allow retail giants such as Wal-Mart and Tesco to set up partnerships with local firms and sell directly to consumers in India.

The proposal was first announced a year ago, but the Congress-led government backtracked after protests from coalition partners, the BBC reports.

Prime Minister Manmohan Singh says he believes the move will help strengthen India's growth process and generate employment in difficult times.