Why not increase the Supply side? When Pepsi came in the 80s it was thought the supply side wouldn't keep up and Pepsi's sugar water soda's would eat all the sugar India could produce. Instead Pepsi invested heavily in farming contracts and tied with policy changes, India is a net exporter of Sugar. (Though personally I think sugar water drinks are bad for you and should pay a health tax). WalMart and Carrefore want to do this for retail. But Reliance and others have effectively blocked their entry to give themselves time to capture this market. While I applaud local companies winning, I also know this stops foreign investment and technology - and more critically stops access to foreign markets. In 2004 China got more in FDI in a month than India did in 5 years. Walmart invested heavily in China building out retail and supply chains. Unlike Reliance, WalMart also had a large chains around the World. Their Chinese chains not only supplied their stores in China, but around the World. Chinese made shoes, clothes, electronics, toys, CDs, TVs - at every WalMart. Walmart became China's largest single exporter selling $80 BILLION of Chinese goods to the USA per year by 2004.
