Retail sector is a sunrise industry in India and the prospect for growth is simply huge. There are many factors that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of them can be listed as follows:
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.The retail sector in India is emerging as one of the largest Market size over the past few years (USD billion) sectors in the economy The total market size was estimated to be around USD billion in , thereby registering a CAGR of per cent since The Indian retail sector is highly fragmented and the unorganised sector has around 13 million retail outlets that account for around % of the total Indian retail industry.
However, going forward, the organised sector’s growth potential is expected to increase due to globalisation, high economic growth, and improved lifestyle. 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.
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Indian retail sector is witnessing exabytes of information flowing across broadband pipes and the advent of multiple sources and techniques of data gathering.
Mobile phones, online shopping. 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.