Foreign companies may soon be allowed to invest more in India's US$444 billion retail sector, reports the Wall Street Journal.
The newspaper says the government is likely to loosen regulations restricting foreign ownership in supermarkets and big department stores. The exact level of equity foreign companies will be allowed to have has yet to be determined.
India opened up to foreign investment in single-brand retail companies in 2006, allowing overseas ownership of up to 51%. But some large single-brand retailers say they prefer to operate fully owned subsidiaries in India.
The reform proposal has been slammed by critics, arguing that competition from big multinational companies would hurt India's millions of small-time retailers.
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