Grocery, apparel to be favourites for MNC retailers: Deloitte
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The new FDI policy also presents a unique set of implications for domestic retailers. On the one hand, it exposes domestic retailers to competition from foreign retailers, while on the other, it seeks to safeguard them with a slew of protective measures.
FDI in multi-brand retail is a state subject and as per the policy, e-commerce is not allowed as an alternate channel, as it can serve the customer beyond the physical location of the store.
"Restriction on foreign retailers from conducting multi-brand retail in towns with population less than one million can be construed as an enabling policy by domestic retailers, who should now focus their efforts to expand their retail footprint," Gupta says.