The Indian government is most likely to relax norms in retailing and allow global supermarket chains such as Walmart, Tesco and Carrefour to set up retail chains in the country.

The department of industrial policy and promotion of the India government has put forward a proposal to allow 51% FDI in multi-brand retail and 100% in single-brand retail in the country. Most union ministries are believed to have given their consent to the proposal and a decision is expected next week on the matter.

The proposal includes a condition that at least 50% of the total FDI should be in back-end infrastructure. The government will only allow large deep discount stores in cities with population of more than 10 lakhs and only in states that allow FDI in multi-brand retailing.

According to government sources, the proposal has already been sent to the cabinet for final approval. Small scale retailers are opposing the move to allow large foreign firms to operate in the sector in the country as they believe that it will affect their business.

The Indian government now allows 51 percent foreign investment in single-brand retailers and 100 percent for wholesale operations. Foreign retailer shave long been asking the Indian government to allow more foreign investment in the sector.