The world’s largest retailer Wal-Mart has solicited support from the US government for entering the multi-billion dollar Indian retail market, where foreign investment norms are posing hurdles to its entry.

The retail arm of Reliance Industries (RIL) has cut its losses as a new centralised supply chain brought savings, and shoppers started spending more as the Indian economy returned to a high growth path after the slowdown of 2008.

The problems are huge but for those looking to set up shop in India, the benefits outweigh the negatives. Lush green fields greet visitors to the agricultural heartland in India’s northwest, some dotted with tall bundles of paddy covered with black tarpaulin, exposed to the sun, the occasional thundershower and rodents.

As Prime Minister Singh recently noted, India needs greater competition to keep food prices in check for the consumer. This would require the government to take a “firm view on opening up the retail trade.”

French retailer Carrefour is close to a deal with a unit of Pantaloon Retail, India’s largest listed retailer, to set up franchisee stores in India, the Economic Times reported on Tuesday citing an anonymous source.

Bharti Enterprises is one of India’s leading business groups with interests in telecom, agri-business, financial services, retail and manufacturing. Bharti Airtel, a group company, is one of Asia’s leading providers of telecommunications services.

China is the current leader in manufacturing of consumer durables, but this scenario may change for international investments follwoing recent changes in tax regulation, currency appreciation and demand saturation in Indian urban markets. China’s loss may be India’s gain.

We have 70 stores now, which we plan to increase to 200 in one year. Most of these these would be under our brand ‘Easy Day’. We already have ‘Easy Day’ neighbourhood stores in Punjab, Haryana, Rajasthan, Uttar Pradesh and Delhi, and compact hypermarkets called ‘Easyday Market’ in Punjab.

Even after announcing 100% depreciation for cold chain investments in the Union Budget for 2009, the industry is yet to come forward and make investments in the sector which is considered vital for the growth of agriculture and food processing sector in the country.

The Indian cash and carry, wholesale, business to business and back end supply chain, Bharti-Walmart Pvt Ltd, are hoping to open up to 15 ‘Best Price Modern Wholesale’ outlets in the next three years.