India discusses opening its retail sector for foreign investors

© Scanpix/Reuters

The Indian cabinet is going to discuss a proposal regarding opening the retail sector for foreign companies as Wal-Mart and Tesco. The country may allow 51% FDI in the sector that generates $450bn a year in sales. At the moment large foreign companies can be only wholesalers and are not allowed to sell directly to customers. The issue is controversial and it will be difficult to reach a consensus on it.