The Indian government’s focus on improving the spending power of the rural population could present opportunities for the retail sector, given that more than 65 percent of all Indians live outside urban areas. Foreign players have long tried to tap into India’s diverse market. However, tough operating conditions and a challenging regulatory environment have long undermined their attempts to break into the retail sector. The latest easing of FDI norms and the promise of further reforms under a stable government could, albeit tentatively, revive the interest of foreign firms in India.