Retail is the place where the products and goods are sold to the end users.
This about a third of levels in United States and Europe; and about half of levels in other emerging economies. A complete expansion of retail sector to levels and productivity similar to other emerging economies and developed economies such as the United States would create over 50 million jobs in India.
Training and development of labour and management for higher retail productivity is expected to be a challenge. In Novemberthe Indian government announced relaxation of some rules and the opening of retail market to competition.
India retail reforms[ edit ] UntilIndian central government denied foreign direct investment FDI in multi-brand Indian retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets, to sell multiple products from different brands directly to Indian consumers.
The government of Manmohan Singh, prime minister, announced on 24 November the following: In other words, the policy is an enabling legal framework for India.
The states of India have the prerogative to accept it and implement it, or they can decide to not implement it if they so choose. Actual implementation of policy will be within the parameters of state laws and regulations.
The opening of retail industry to global competition is expected to spur a retail rush to India. It has the potential to transform not only the retailing landscape but also the nation's ailing infrastructure.
Reuters reports that this risked a possible dilution of the policy rather than a change of heart. Suspension of retail reforms on 7 December would be, the reports claimed, an embarrassing defeat for the Indian government, suggesting it is weak and ineffective in implementing its ideas.
It reasoned that the sources of domestic retail are primarily local whereas international retail affects domestic manufacturing activity and hence reduces employment opportunities. IKEA in the near term, plans to focus expansion instead in China and Russia, where such restrictions do not exist.
Controversy over allowing Foreign retailers[ edit ] A horticultural produce retail market in Kolkata, India; produce loss in these retail formats is very high for perishables Critics of deregulating retail in India are making one or more of the following claims: Walmart employs very few people in the United States.
If allowed to expand in India as much as Walmart has expanded in the United States, few thousand jobs may be created but millions will be lost.
Walmart's efficiency at supply chain management leads to direct procurement of goods from the supplier. In addition to eliminating the "middle-man", due to its status as the leading retailer, suppliers of goods are pressured to drop prices in order to assure consistent cash flow.
The small retailer and the middle man present in the retail industry play a large part in supporting the local economy, since they typically procure goods and services from the area they have their retail shops in. This leads to increased economic activity, and wealth redistribution.
With large, efficient retailers, goods are acquired in other regions, hence reducing the local economy. Walmart may lower prices to dump goods, get competition out of the way, become a monopoly, then raise prices.
It is argued this was the case of the soft drinks industry, where Pepsi and Coca-Cola came in and wiped out all the domestic brands. India doesn't need foreign retailers, since homegrown companies and traditional markets have been able to do the job. Work will be done by Indians, profits will go to foreigners.
The government hasn't built consensus. The government claims modern retail will create 4 million new jobs. This cannot be true because Walmart, with over stores worldwide, has only 2. Walmart has a 6. Adjusted for this market share, the expected jobs in future Indian organised retail would total over 85 million.
In addition, millions of additional jobs will be created during the building of and the maintenance of retail stores, roads, cold storage centers, software industry, electronic cash registers and other retail supporting organisations.
Instead of job losses, retail reforms are likely to be massive boost to Indian job availability. In absolute terms, China experienced the creation of 26 million new jobs within 9 years, post China announcing FDI retail reforms. The Indian economy is small, with limited surplus capital. The government is already operating on budget deficits.
It is simply not possible for Indian investors or the government to fund this expansion, job creation and growth at the rate India needs. Global investment capital through FDI is necessary. Beyond capital, the Indian retail industry needs knowledge and global integration.
Global retail leaders, some of which are partly owned by people of Indian origin,  can bring this knowledge. Global integration can potentially open export markets for Indian farmers and producers.
These retail companies have operated for over 30 years in numerous countries. They have not become monopolies. Competition between Walmart-like retailers has kept food prices in check.Find the latest Retail News, Information, Analysis, Insights & Articles, Retail Stores, Online Retail in India, Retailers, Retail Shop, Retailing from all top sources for the Indian Retail.
challenges before Indian retail sector in view of recent policy changes by Government of India. With India's large ‘young’ population and high domestic consumption, the macro trends for the sector .
Get details on Indian retail, domestic organised retail sector in the country. Find information on organized retails sectors such as shopping mall, modern retail shops etc.
Users can get details on un-organised retail sector like Paan, Beedi shops, handcart hawkers, pavement vendors etc. Industry Research I Retail Industry 5 Although largely unorganized, the Indian retail sector witnessed sharp growth over the past few years.
Food & grocery and clothing & footwear segment are the main revenue drivers in the Indian retailing, together accounting for approximately 80% of . The Indian Retail Industry is the 5th largest retail destination and the second most attractive market for investment in the globe after Vietnam as reported by AT Kearney‘s seventh annual Globe Retail Development Index (GRDI), in Retail sector contributes to maximum percentage of .
The size of Indian retail industry has grown by leaps and bounds in the last five years. But “What will be the future size of the retail industry' is the mind boggling question”.The present value of the Indian retail market is estimated by the India Retail annual growth rate percent.