If India permits 100 per cent FDI in multi-brand retail trade it will improve the ease of doing business for the sector. To overcome the barriers and enable a smooth growth and harmonious coexistence of traditional and modern retail, a single cohesive national retail policy should adequately address all concerned areas.

Several steps need to be taken, including strengthening labor laws by regularising policies around part-time labor to ensure greater participation of women in the workforce; and reviewing food safety policies to update archaic laws governing stocking limits, weights and measures, labeling, and taxes on expired food items. Real estate constraints for retail expansion should be removed by creating dedicated retail special economic zones as well as simplifying regulations and real estate approvals for kiranas to expand their stores.

Improved access to capital will help retail business especially traditional retailers. With a simplified, cohesive policy and a focused effort on modernising the traditional retail sector, it is possible to create multiple wins such as higher growth of the sector, larger traditional retail stores under regulatory compliance, and improved back-end efficiency with a lower overall cost to serve. The current foreign direct investment policy permits overseas players to hold 51 per cent stake in an Indian retail company.