The Hindu newspaper has reported that the Indian Government could allow up to 51 percent foreign direct investment (FDI) in multi-brand retail, after the monsoon session of Parliament concludes. The news article suggests that a Committee of Secretaries supports the FDI reform measure and that the Ministry of Commerce and Industry's Department of Industrial Policy and Promotion is in the final stages of putting together a note on this issue for consideration by the Cabinet of Ministers.
This said, permission for FDI in multi-brand retail will probably come with a handful of conditions that will have to be met by investors. Some of the conditions reported to be favoured by the Committee of Secretaries include requiring a minimum investment of USD 100 million and a provision that at least 50 percent of the investment is made in 'back-end' infrastructure.