Luxury brands will soon find their place on Indian soil after the government agreed to open up its retail industry and allow full foreign ownership of single brand stores, the Financial Times writes. 

The move is in line with liberalisation efforts and coincide with the country's continuously growing luxury market and high net worth population. Previously, foreign groups were only allowed to operate in India if they had an Indian partner and could only hold up to 51 per cent of a business. 

The move received mixed reactions, with some welcoming the possible influx of single name and luxury brands and others fearing that this might undermine local players. As a form of control, the government has required all global retailers entering the market to source at least 30 per cent of their products from India's small and cottage industry sector. 

According to PricewaterhouseCoopers, India's retail industry is expected to grow to around $900 billion by 2014 what with rising disposable incomes, store expansions and other positive economic factors. In its latest report titled Strong and Steady 2011, India's retail market for the year was estimated to be worth $500 billion. India is the third largest retail market in Asia after China and Japan.