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UK supermarket giant Tesco set to become first to open in India


UK supermarket giant Tesco set to become first to open in India


British supermarket giant Tesco is set to become the first foreign retailer to set up a chain of stories in India.

India’s Foreign Investment Promotion Board (FIPP) has approved a €80 million investment plan by Tesco.

The deal involves Tesco buying a 50% stake in Tata Group’s Trent Hypermarket.

News agency Reuters reports Tesco is now expected to open three or four stores a year under a slow expansion plan designed to comply with Indian regulations.

FIPP also approved a proposal by British telecoms group Vodafone to take full ownership of its Indian business.

Tesco’s decision to invest in India is seen as a vote of confidence in an economy that grew at its slowest pace in a decade in the past fiscal year and is struggling to attract foreign investors.

The venture also provides a boost for the Indian government after its decision to open up the supermarket sector in September 2012 received a muted response from overseas retailers put off by ambiguous foreign participation rules and political opposition.

In October the world’s biggest retailer Wal-Mart called off a joint venture with India’s Bharti Enterprises, citing unfriendly regulations.

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