The Indian government has agreed in principle to allow foreign direct investment in multibrand retail joint ventures with an investment cap of 51%. The country already allows foreign companies to invest up to 100% in wholesale operations and 51% in single-brand retail operations. The change in the policy came about after finance ministry chief economic adviser Kaushik Basu said the country’s doors should not remain closed to foreign businesses as they would help curb inflation and bring growth to the country.

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