Foreign retailers continue to be vary of the political climate in India and may defer plans for entry either to late 2013 or even 2014.
Though the government has cleared the decks for foreign investment in single and multi-brand retail in the country, various companies are expected to adopt a more passive approch.
General elections in India are due in 2014 and if the incumbent government fails to return to power, it could prove to be a major dampner for retailers looking to invest in India, reported the Hindu Business Line.
According to the trade analyst Cushman and Wakefield India, the retailers are likely to research and weigh the market dynamics in 2013 before taking a final decision.
For some of the retailers such as Tesco, economic conditions of their home markets and political resistance in India are seen as prime factors for delaying their debut.
