The Indian government secured an approval from the Parliament to go ahead with its proposed reforms in the country’s retail sector.

Decks are now cleared for retail majors such as Wal-Mart and Tesco to open stores in the country as the upper house of the Parliament, much like the lower one, voted to allow 51% foreign direct investment for multi-brand retail in the country.

The Parliament also gave an affirmative vote to amendment the country’s foreign exchange regulations to ensure effective implementation of the foreign investment directives.

Following the vote, US retail major Wal-Mart has stepped up efforts to open a store in the Delhi market while British retailer Tesco is looking at Mumbai and Bangalore as the possible locations to make its India debut.

The Delhi Government will introduce an amendment to its Agricultural Produce Marketing Committee (APMC) Act and facilitate direct procurement of farm products by multi-national retailers.

Wal-Mart is likely to be offered a 72a land in Tikri Khud area in West Delhi to open a store.

Tesco Chief Executive Philip Clarke met up members of the Tata family, to provide fresh impetus to the retailers plans to enter India.

Incidentally both retailers have faced turbulent times, especially in the US markets in the recent months.

Wal-Mart has had to face a workers backlash on a number of issues while also having to order an internal probe into alleged corruption incidents.

Tesco, on the other hand, continues to battle faltering sales in the European markets while the US division – Fresh and Easy could be sold after returning a single quarter of profit since its inception.