The opening of new markets

The internationalisation of retailers has not been a linear journey but rather witnessed big splurges of activity due to political and economic changes.  One such change is just happening in India.  Until now the Indian market has been almost closed to international retailers in a bid to protect businesses indigenous to the country, however such restrictions prevent the modernisation of the sector and can lead to inflationary pressures on consumer goods.  A relaxation of the laws on foreign direct investment into the retail sector now looks likely & will lead to a wave of activity from the worlds largest retailers seeking expansion into the massive Indian market.  Under the proposals, incoming retailers would be able to own 51% of any venture (i.e. a controlling stake), and will have to invest at least $100m, half of which will need to be invested into infrastructure that will benefit all retailers in the sector.  They will only be able to operate multi-brand stores in cities with a population in excess of 1m.  This really does represent a huge change in the attractiveness of the Indian market and a great opportunity for the likes of Tesco who desperately needs strong international sales given it's weak strategic position in the UK.  For sure further liberalisation of the market will come in future years and so any investment now is likely to reap even greater opportunities in the future.