French retail chain Carrefour and U. S. retail giant Walmart could review their plans to set up stores in India, in case the government doesn't relax some of the "tough" norms in its foreign investment policy.

Both Carrefour and Walmart have reportedly written to the Indian government, expressing their reluctance to make investments in the Indian multi-brand retail market due to uncertainties around the FDI policy.

The retailers want the government to give written assurance on their concerns so that their FDI proposals could receive easy clearance.

Speaking on the topic, a DIPP official said, "Some announcements have been made in the Budget.. However, these are not spelt out in the policy. The foreign retail companies have sought clarity on these and other issues."

Foreign investors are also arguing that some of the government's FDI norms are so tough that they can be complied with. Moreover, the government announced in this year's Budget that small & medium enterprises
(SMEs) would continue to receive their special benefits even after they grow and stop to qualify as small enterprises.

The Cabinet had in September last year cleared the policy, allowing up to 51 per cent FDI in multi-brand retail. But, despite the high level of interest in the $500-billion Indian market, foreign chains have yet to come up with proposals, as some guidelines "lack clarity" and, they claim, are tough to comply with.