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At the end of last year, many foreign investors were dismayed that the government quickly put off its decision to allow foreign retailers like Walmart to take a 51 percent stake in Indian retailing stores because of protests by opposition political parties and small retailers and wholesalers.
Indian retailing is backward.
On whether to let foreigners invest in Indian retailing, for example, liberalisers clash with small urban shopkeepers.
Then again, Indian retailing, like the wider economy, always seems to be on the brink of change.
Once a liberalising champion, the party has taken against letting foreigners into Indian retailing, reversing a 2004 manifesto pledge in order to court urban traders afraid of Walmart.
Some, such as Surjit Bhalla, of Oxus Investments, think even 10% is feasible, thanks to a surge in investment.Related items Indian retailing: Getting cheaper and betterFeb 1st 2007 The world economy: India overheatsFeb 1st 2007 India's rickshaws: Colonial yokes are not bad for allFeb 1st 2007Optimism is abundant.
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There are already a few national Indian retail chains, including Pantaloon, India's biggest retailer at the moment.
Just when foreign retailers thought they had found a backdoor entry into the Indian retail market, the government has gone ahead and turned it into a wall.
They are attracting foreign investors and thousands of Indian retail investors, including many novices.
Mohan Murjani, chairman of the group, called the Indian retail situation "a total disaster".
However, for companies in the Indian retail market, rental costs are a higher percentage of their turnover.
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