Nearly a year after the initial announcement, the Indian government has finally implanted the new rule allowing 51% ownership in multibrand retail as well as 100% ownership in single brand retail by foreign entities in India. India already has a host of home grown national retail chains like Croma and Reliance Digital, owned by the Tata Group and Reliance Industries, respectively, two of the biggest Indian conglomerates. Sensing the mood, regional electronics retailers have been consolidating their hold over the market through rapid expansion over the past few years; as a result chain stores by multi brand dealers spread across states or multiple states. Now India could see the entry of large retailer like Walmart, Metro, Carrefour, and others. Walmart and Metro already operate wholesale cash and carry format outlets in the country.
In addition to allowing increased foreign investment in retail, the Indian government has made other announcements that appear to have strengthened the Indian Rupee. This should help the Indian electronics market, as electronics items are mostly imported, so a stronger Rupee will give the industry more flexibility in end market pricing.