India eased investment rules for the retail sector on Thursday, allowing foreign supermarket operators to procure from small businesses which have invested no more than the equivalent of $2 million in plant and machinery, Trade Minister Anand Sharma told reporters.
Global supermarket chains like Wal-Mart Stores Inc and Tesco will also be allowed to invest 50 percent of an "initial" mandatory investment of $100 million in setting up cold storages and warehouses in the country, Sharma said.
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India, which threw open its supermarket sector to foreign retailers in September 2012, has not yet received a single application due to ambiguity around existing entry rules.
(Reporting by Nigam Prusty and CK Nayak; editing by Patrick Graham)