India has over the past decade or so proved its competency as a destination for outsourcing software for the IT backend and semiconductor chip design services segments. New impetus though will come from the rapidly growing local electronics equipment hardware market.

India is therefore keen to attract electronics manufacturers, especially semiconductor makers and the new policy is a step in that direction.

It is interesting to observe how several international retail chains like Tesco and Carrefour, which are yet to firm their plans for front end retail in India, have expressed interest in the cash & carry business. Currently this is the only way they can bring in equity as they enter the Indian market.

Explaining this interest, Euromonitor- a London-based market intelligence firm- states, “when the restrictions on retail in India are lifted, international retailers will be in a prime position to easily convert their cash & carry stores into highly profitable supermarkets and hypermarkets.”