BJP manifesto deals blow to global retailers, says will ban foreign supermarkets in India

Apr 07 2014, 18:08 IST
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Tesco's spokesman in India was not immediately available for comment on the BJP's manifesto. (PTI) Tesco's spokesman in India was not immediately available for comment on the BJP's manifesto. (PTI)
SummaryThe BJP manifesto was unveiled today in the presence of PM candidate Narendra Modi, President Rajnath Singh and others in Delhi and it confirmed it would ban foreign supermarkets from the $500 billion retail sector, a move that would deal a fresh setback to global chains such as Wal-Mart and Carrefour.

around it," said the official, who declined to be identified because he was not authorised to speak to the media.

"If they are not open to talking then it's really very unfortunate," he said.

Wal-Mart did not respond to an email sent by Reuters.

If implemented, the BJP's ban on foreign supermarkets may spur further consolidation in Indian retail, where investors have grown impatient with years of losses at most of the country's supermarket chains, analysts said.

"Now we can actually expect conversations on valuations because some companies will look at selling out as it will simply be too difficult to run the business without external funding," said Rachna Nath, who heads the retail and consumer practice at consultants PWC.

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