FDI: Walmart, Tesco seek reassurance

Global retailers like Walmart and Tesco have sought assurance from India that any change of governments at both Centre and states should not result in reversal of FDI policy in the multi-brand segment.

Bentonville-based Walmart has also raised apprehensions about the ongoing probe by investigating agency Enforcement Directorate, said an internal note of the Department of Industrial Policy and Promotion (DIPP).

"Some prospective foreign investors have discussed plans for investing in multi-brand retail trading (MBRT) in India. They have generally conveyed that they have to address (certain) apprehensions of their Boards while taking investment decisions," the note said.

The main issue raised by Walmart and Tesco was that "the next government could reverse the MBRT policy. States which have at present opted for opening of front-end stores in their territory can opt out at a later stage".