Retail sector players in India, which is one of the most significant retail markets in the world worth US $ 450 billion, are increasing looking to scale down their expansion plans while some are even selling their assets and closing stores to reduce the debt burden.

India's largest supermarket operator Future Group has already sold its financial service business, Future Capital Holdings to Warburg Pincus. The cash-strapped group has also sold its flagship clothing brand and is planning to sell more units.

The retail sector has been hit by a slowdown in the economy, high food inflation, low retail prices and very high real estate prices. The situation comes six months after the government was forced to delay its decision to allow players like Wal-Mart and Tesco to enter the country.

Supports of FDI in retail say that it will the issue of supply bottle necks, develop supply chain infrastructure, reduce wastage of food and improve efficiency, besides generating employment. They also say that it will benefit farmers, who will be able to negotiate better deals with large firms and ultimately, customers, who will get commodities at a cheaper price.

Foreign partners would bring experience, expertise and funds however experts believe that the government is unlikely to take any decision on the matter until 2014.