After a long wait, the government has finally allowed 51% foreign direct investment (FDI) in the multi-brand retail. It has also decided to raise the cap on foreign investment in single-brand retailing to 100% from the current 51%.
"This is a bold and significant move," said Raj Jain, managing director and chief executive officer, Bharti Walmart.
Jain who started his journey with Walmart in India five years ago in a joint venture with Bharti feels that this move would have a deep and long lasting impact on the way consumers shop. "It will redefine the way supply chains in India run today," he said.
Despite this move being a game changer for the Indian retail industry, Jain feels that we should not expect flood of investment to come immediately.
"There should be substantial amounts of investment flowing over the next two to three years. Lot of the caveats which will be there and this announcement will have to be properly studied," he explained.
Below is the edited transcript of Jain's interview with CNBC-TV18.
Q: How much of a game changer is this going to be for the Indian retail landscape?