Apple can now open stores in India, but Walmart has to wait

Photo credit: Pixabay.

“India is now the most open economy in the world in FDI (foreign direct investment),” tweeted Indian prime minister Narendra Modi today. He had just chaired a high-level meeting which decided to allow 100 percent foreign direct investment (FDI) in a slew of sectors, including sensitive ones like defence and civil aviation.

Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI.

— PMO India (@PMOIndia) June 20, 2016

It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce (1/2)

— PMO India (@PMOIndia) June 20, 2016

In several sectors, including aviation, India allows for automatic FDI approval. Sectors like defense, which capped foreign direct investment at 49 percent can now go higher with government approval. Broadcasting, pharmaceuticals, and single brand retail are other major sectors which have opened up.

Apple stores in India at last

Apple’s iconic glass tower at its Pudong, Shanghai, store.

In the tech ecosystem, the opening up of single brand retail to foreign direct investment will be cheered in Apple HQ at Cupertino, California. It means Apple will finally be able to open its iconic stores in the world’s fastest growing smartphone market. Earlier, it had to go with local partner like Reliance.

A fillip to ecommerce, but only in food

What exactly is a marketplace, anyway?