India has eased key rules on foreign direct investment in multi-brand retail in an attempt to attract foreign firms as it looks to boost economic growth.
Rules governing sourcing of products, infrastructure investment and selection of cities have been relaxed.
India had opened up multi-brand retail to foreign investors last year, but no foreign supermarket chain has yet entered the country.
The move also triggered a series of protests in India.
The previous rules made it mandatory for foreign supermarkets to source 30% of their products from small Indian firms.
The government has retained that requirement, but said foreign firms will be given five years in which to reach that target, giving them the option of importing goods from overseas initially.
Global chains will also have to put 50% of their initial investment in to building back-end infrastructure such as cold storage facilities.
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