Budget 2014: Will govt allow FDI in multi-brand retail?

For Tesco, the key to success will be the potential to scale up the investment already approved.

Multi-brand retail companies are hoping that the Budget will deliver new expansion opportunities for them - this despite the BJP's staunch opposition to FDI in the sector-but British retailers remain cautiously optimistic.

For Tesco, the key to success will be the potential to scale up the investment already approved.

Amit Tulsian, Partner-international markets, KPMG says, "In terms of Tesco, if you look at Trent today, it is a regional play. They will be aspirant in making it a much larger play in order to bring in scale to their business either in form of distribution which is the front-end or building up a supply chain backend which is robust enough to help grow the front-end and economies of the business as such."

Many big companies are prepared to take into account BJP sensitivities over protecting traditional retail.

Simon Moore, director-international, Confederation of British Industry says, " I think multi-brand retailers would very much welcome relaxation of the rules, a broadening of the rules, acceptance of a wider group of products being delivered to the Indian consumer and the ability to establish and build those partnerships with Indian companies and India as indeed they have been doing.

So, it is more of the same and more liberalisation inline with the messages we are already hearing about the pro business stance from the government."

The Tesco adventure in India may not be sustainable long term as it stands. Companies are hoping that the Budget will deliver new possibilities for multi-brand multiplication even if they don't quite get all that they would like to see.