A comprehensive review of the FDI regime will be undertaken next month and the move to liberalise the retail sector for FDI assumes significance in view of a number of leading Indian industrial groups like the Tatas, Reliance and Bharati entering the booming and huge retail market in tie ups with global retail majors in the last few months.

The review of FDI in retail could also see overseas retailers in multi-brand products in the segment, as against the current rule allowing 51 percent FDI in only single brand. Multi-brand retail in stationery goods, sports goods and electronics is already under active consideration of the government. In wholesale cash-and-carry segment, 100 percent FDI is permitted.

Reliance Industry is understood to be in talks with French retail major Carrefour while the Tatas are planning negotiations with British retail behemoth Tesco to cash in on the burgeoning retail market in India. Bharti has already tied up with American retail giant Wal-Mart.

The retail sector in India is estimated at 300 billion dollars and is forecast to grow to 427 billion dollars by 2010 and 637 billion dollars by 2015.

In the petroleum sector, the government proposes changes in FDI regime easing the stipulation of divestment of 26 percent equity in favour of Indian entities within five years.

In aviation, where 100 percent FDI is now allowed in setting up green-field airports, 74 percent in existing airports and 49 in airlines, the government would consider setting up of a separate chapter for policy on air traffic services and cargo handling at airports.

At present, all aviation activities, barring airports and airlines, are grouped in one segment.

The government will also take a call on liberalising FDI in asset reconstruction segment where the current equity limit is capped at 49 percent through approval of

Foreign Investment Promotion Board.

Meanwhile, Tata Chemicals and Ireland's Total Produce agreed to form an equal joint venture to distribute fresh fruits and vegetables in India to retailers and wholesalers in India. Food and grocery is estimated to make up about two-thirds of India's retail sector and much of it is in small neighbourhood stores.