<p> Tesco, the world’s third largest retailer, is investing $140 million (£85 million) to become the first foreign supermarket to enter India’s $500 billion pounds retail sector, according to Reuters. The company has formed a deal with Trent Limited, part of Tata Group, to create a 50:50 joint venture with Trent Hypermarket Limited (THL) - the operator of the Star Bazaar retail business in India.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Following the completion of the transaction, THL will operate 12 stores retailing a range of merchandise including food and grocery, personal and home care products, home and kitchen, fashion and accessories, etc., according to a press release. The stores will operate under the ‘Star Bazaar’ and ‘Star Daily’ banners and be located across the Southern and Western regions of India.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> As previously reported by AndNowUKnow, in September 2012 the Indian government opened up the supermarket sector to foreign investors. The response from overseas retailers was minimal, as many were said to have been put off by ambiguous foreign participation rules as well as political opposition.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> However, according to BBC News, rules stipulating that foreign supermarkets had to source 30% of their products from local firms were eased in August 2013. While the requirement remains, foreign firms are now allowed five years to reach the 30% target, allowing them to initially import goods from overseas.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> How will Tesco fare in this market? Stay tuned to AndNowUKnow as we continue following Tesco's venture into India.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.tescoplc.com/index.asp?pageid=7" target="_new"> Tesco </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
