India – regarded as a mouth-watering target by international supermarket chains – could be about to oblige.
Reports on Wednesday say the Indian cabinet will discuss allowing foreign "multi-brand" retailers – supermarkets and chain stores – to own 51% of Indian operations. For "single-brand" retailers – the likes of Gucci or Nike - the current 51% limit could be raised to 100%.
This is something Tesco, Wal-Mart and Carrefour have been waiting for. At the moment they are restricted to investing in wholesale operators that cannot sell to the public, or backing franchise partners. Tesco is doing the latter: it has had an agreement with Trent, the retail arm of the giant Tata group, since 2008.
A relaxation of the foreign direct investment rules, however, potentially changes everything. Tesco, for example, already has 100 supermarkets in China, a country that has been far more welcoming to foreign shopkeepers in recent years.
India's small retailers – the millions of kirana shops – are naturally appalled by the threat of western giants on their doorsteps. The Indian cabinet, though, seems persuaded that foreign retailers will bring better logistics and help to put a cap on inflation in food prices.
It is hard, though, to see the development doing much for the Indian tourism industry. "Incredible India" – accurate – is a much better slogan than "we've got Tescos, too".
