Indian U-turn has Flemingo in a flap

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Just weeks after the Airport Authority of India granted Dubai-based Flemingo International the right to set up five duty-free outlets in the country, the government has decided not to allow foreign investment in India's duty-free operations

Flemingo had hoped to open shops at Guwahati, Jaipur, Lucknow, Amritsar and Trivendarum airports in a joint venture with local firm Fleming. It proposed that 20% of the partnership's equity would be with Indian residents, with the remaining 80% coming from outside the country. But the Indian government rejected the proposal, quoting laws protecting India's retail sector. However, it is unclear whether the decision will put an end to Flemingo's hopes of entering the Indian duty-free market.

A Flemingo representative was not available for comment.