2. • FDI IN RETAIL – POLICY PERSPECTIVES.
• RETAIL SECTOR – AN OVERVIEW.
• FDI POLICY IN RETAIL - OPPORTUNITIES & CHALLENGES.
• EMERGING HUMAN RESOURCE CHALLENGES.
• WHAT LIES AHEAD ?
3.
4. THE COMMITMENT OF MONEY OR
CAPITAL TO PURCHASE FINANCIAL
INSTRUMENTS OR ASSETS IN ORDER TO
GAIN PROFITABLE RETURNS.
5. FOREIGN
INVESTMENT DONE BY CITIZENS AND INVESTMENT
GOVERNMENT OF ONE COUNTRY (HOME THROUGH
COUNTRY) INVEST IN INDUSTRIES OF
ANOTHER COUNTRY (HOST COUNTRY).
FOREIGN FOREIGN
DIRECT INSTITUTIONAL
INVESTMENTS INVESTORS
6. AUTOMATIC ROUTE GOVERNMENT
NO PERMISSION APPROVAL /LICENSE
REQUIRED REQUIRED.
GENERAL RULE : NO PRIOR PERMISSION BY EXCEPTION : PRIOR GOVERNMENT
REQUIRED. INFORM RESERVE BANK APPROVAL NEEDED. DECISION
WITHIN 30 DAYS OF INFLOW/ISSUE OF GENERALLY WITHIN 4-6 WEEKS.
SHARES.
7. PORTFOLIO INVESTMENT
INVESTMENT THAT DOES NOT INVOLVE OBTAINING A DEGREE OF
CONTROL IN A COMPANY.
FOREIGN DIRECT INVESTMENT
PURCHASE OF PHYSICAL ASSETS OR A SIGNIFICANT AMOUNT OF THE
OWNERSHIP (STOCK) OF A COMPANY IN ANOTHER COUNTRY TO GAIN
A MEASURE OF MANAGEMENT CONTROL.
8. • 1991- FDI ALLOWED SELECTIVELY UP TO 51% IN
PRIORITY SECTORS.
• 1997-FDI ALLOWED UP TO 100% IN SECTORS LIKE
MINING, MANUFACTURING.
9. FDI EQUITY LIMIT- FDI REQUIRING PRIOR
AUTOMATIC ROUTE APPROVAL
INSURANCE – 26% DEFENSE PRODUCTION – 26%
DOMESTIC AIRLINES – 49% FM BROADCASTING - 20%
NEWS AND CURRENT AFFAIRS-
TELECOM SERVICES- FOREIGN 26%
EQUITY 74% BROADCASTING- CABLE, UP-
PRIVATE SECTOR BANKS- 74% LINKING – 49%
TRADING- WHOLESALE CASH
MINING OF DIAMONDS AND AND CARRY, EXPORT TRADING,
PRECIOUS STONES- 74% ETC., -100%
EXPLORATION AND MINING OF TEA PLANTATION – 100%
COAL AND LIGNITE FOR CAPTIVE DEVELOPMENT OF AIRPORTS-
100%
CONSUMPTION- 74% COURIER SERVICES- 100%
10. • 2000-06 FDI ALLOWED UP TO 100% IN SPECIFIED SECTORS.
FDI LIMITS INCREASED.
PROCEDURES FURTHER SIMPLIFIED
• THE TOP 3 INDIAN REGIONS ATTRACTING THE HIGHEST FDI.
MUMBAI, DELHI AND KARNATAKA.
ACCOUNT FOR NEARLY 62% OF THE TOTAL FDI.
11. INCREASE INVESTMENT LEVEL AND THEREBY INCOME & EMPLOYMENT
INCREASE TAX REVENUE OF GOVERNMENT
FACILITATES TRANSFER OF TECHNOLOGY
ENCOURAGE MANAGERIAL REVOLUTION THROUGH PROFESSIONAL
MANAGEMENT
INCREASE EXPORTS AND REDUCE IMPORT REQUIREMENTS
INCREASE COMPETITION AND BREAK DOMESTIC MONOPOLIES
IMPROVES QUALITY AND REDUCES COST OF INPUTS
12. Flow to high profit areas rather than main concern areas
Through their power and flexibility, MNC can undermine
economic autonomy and control
Sometimes interferes in the national politics
Sometimes engage in unfair and unethical trade practices
Sometimes result in minimizing / eliminating competition
and create monopolies or oligopolistic structures
13. SUPER
GOVERNMENT MARKET
KIRANA STORES STORES HYPER
CONVENIENCE
MARKET
STORE MALLS
WEEKLY BRAND
MARKET OUTLETS
BARTER VILLAGE
SYSTEM MELAS
15. INCENTIVES ATTRACT FDI.
HUGE MARKET SIZE AND POTENTIAL ARE SUFFICIENT
INDUCERS.
TAX BREAKS, IMPORT DUTY EXEMPTIONS, LAND AND
POWER SUBSIDIES, AND OTHER ENTICEMENTS.
16. FDI INFLOWS FROM
FDI INFLOWS FROM
AUGUST 1991 TO
2000-2010 CROSSED
APRIL 2010 WERE
$300 BILLION
$134.6 BILLION.
17.
18.
19. GLOBAL RETAIL DEVELOPMENT
INDEX POSITION : 3RD
SIZE : $ 400 BILLION
GROWTH RATE : 13%
GDP CONTRIBUTION : 12%
MAJOR SECTOR : FOOD AND GROCERY
EMPLOYMENT : 2ND LARGEST
INDUSTRY (35.06 MILLION)
TYPES:
ORGANIZED ( 5%)
UNORGANIZED ( 95%)
20. INDIA HAS LARGEST NUMBER OF RETAIL TRADERS.
INDIA HAS 1,25,00,000 RETAILS OUTLETS.
RETAIL TRADE CONTRIBUTES 10 -11% OF GDP.
TOTAL TURNOVER OF RETAIL SECTOR IS 8,75,000 CRORES.
AFTER AGRICULTURE, RETAIL PROVIDES EMPLOYMENT TO
MAX NUMBER OF PERSONS ( 4 CRORES)
21. • CORPORATES ARE INCREASINGLY COMING INTO
THIS SECTOR.
• DEMAND OF BRANDED GOODS ON A LARGE SCALE.
• DEMAND OF NEW AND VARIED PRODUCTS.
• HIGH QUALITY PRODUCT IS PREFERRED .
• VARIED WINDOW DISPLAY.
• E-TAILERS INCREASE THE PRESENCE.
22. FORMAT DESCRIPTION RETAILERS
HYPERMARKETS OFFERING BASKET OF PRODUCT SPENCERS, BIG BAZAAR
CASH AND CARRY BULK-BUYING REQUIREMENT BHARTI-WAL-MART
DEPARTMENTAL STORES LARGE LAYOUT, WIDE MERCHANDISE MIX LIFESTYLE , GLOBUS
SUPERMARKETS HOUSEHOLD PRODUCT AS WELL AS FOOD APNA BAZAAR , FOOD
AS INTEGRAL PART OF THE SERVICE BAZAAR
SHOP-IN-SHOP SHOPS LOCATED IN SHOPPING MALLS NAVRAS ( BIG BAZAAR)
SPECIALTY STORES FOCUS ON INDIVIDUAL PRODUCT TYPE BRAND FACTORY
CATEGORY KILLERS PARTICULAR SEGMENT THE LOFT
DISCOUNT STORES BRANDED PRODUCT AT DISCOUNTED SUBHIKSHA, LEVI’S
PRICES OUTLET
CONVENIENCE STORES SMALL RETAIL STORES IN AND OUT
23. RETAIL SEGMENT PERCENTAGE HOLDING MAJOR RETAILERS
IN SECTOR
FOOD AND GROCERY 63% RELIANCE FRESH, CAFÉ
BRIO, FOOD BAZAAR
CLOTHING, TEXTILE 9% WESTSIDE, SHOPPERS
AND FASHION STOP, GLOBUS
JEWELLERY 5% TANISHQ
CATERING SERVICES 5% IRCTC
CONSUMER DURABLE 4% VIVEKS, VIJAY SALES,
CROMA
PHARMACEUTICALS 4% PIRAMAL GROUP
ENTERTAINMENT 3% BOWLING CO.,
FURNISHING, UTENSILS 3% HOMETOWN, TANGENT
CONCEPT
MOBILE HANDSETS 2% THE MOBILE STORE,
24. • ONE OF THE WORLD'S LARGEST INDUSTRIES
EXCEEDING US$ 9 TRILLION.
• DOMINATED BY DEVELOPED COUNTRIES.
• 47 GLOBAL FORTUNE COMPANIES & 25 OF ASIA'S
TOP 200 COMPANIES ARE RETAILERS.
• US, EU & JAPAN CONSTITUTE 80% OF WORLD
RETAIL SALES.
25. • RETAIL TRADE IN EUROPE EMPLOYS 15% OF
THE EUROPEAN WORKFORCE (3 MILLION FIRMS AND 13
MILLION WORKERS).
• THE WORLD’S POPULATION IS POISED TO EXPAND 50%
BY 2050. THE WORLD CURRENTLY COMPRISES OF 78%
POOR, 11% MIDDLE INCOME AND 11% RICH.
28. US
Taiwan
Malaysia
Thailand Organised
Indonesia
Unorganised
China
India
0 20 40 60 80 100
US TAIWAN MALAYSIA THAILAND INDONESIA CHINA INDIA
UNORGANISED 15% 19% 45% 60% 70% 80% 95%
ORGANISED 85% 81% 55% 40% 30% 20% 5%
29.
30. INDIA CHINA
FOCUS ON SERVICES FOCUS ON INDUSTRY
HIGH LABOR COST LOW LABOR COST
HOME GROWN CAPITAL FDI
OLD TECHNOLOGY ADAPTABILITY TO LATEST
TECHNOLOGY
DEMOCRATIC GOVERNMENT COMMUNIST GOVERNMENT
31.
32.
33. INDIA
• A LARGE EMERGING MARKET .
INCREASE IN DISPOSABLE INCOME OF A FAMILY.
70 MN INDIANS – SALARY OF $18,000.
RISE TO 140 MN BY 2011.
CONSUMER SPENDING POWER INCREASED BY
75% IN LAST 3 YEARS.
THE PER CAPITA INCOME IN 2009–2010 HAS
MORE THAN DOUBLED TO US$ 849 FROM US$ 348
IN 2000–01.
34. • INCREASE IN CONSUMER CLASS.
CONSUMER CLASS WILL GROW UPPER CLASS
FROM 50 MILLION AT PRESENT TO
MIDDLE CLASS
583 MILLION BY 2025.
WITH MORE THAN 23 MILLION
LOWER CLASS
PEOPLE TAKING THEIR PLACE
AMONG THE WORLD’S WEALTHIEST
CITIZENS.
35. • WIDE DEMOGRAPHICS -- AVERAGE AGE OF 25 YRS.
• BRAND CONSCIOUSNESS.
60 % OF POPULATION BELOW AGE OF 30.
AWARENESS THROUGH WORLD WIDE WEB.
• CHANGING CONSUMER MINDSET.
FOCUS SHIFTING FROM LOW PRICE TO
CONVENIENCE, VALUE AND A SUPERIOR SHOPPING
EXPERIENCE.
• SMALL BASKET SIZE SHAPING OF CONSUMPTION.
36.
37. • Employment generation.
Second-largest employer after ADDITIONAL
1.6 MN JOBS
agriculture.
Retail trade employing 35.06 million.
Wholesale trade generating an additional
employment of 5.48 million.
38. • TECHNOLOGY BETTER USE OF RESOURCES
AND GOODS.
WASTAGE AND STORAGE PROBLEMS WILL BE
RESOLVED.
EFFICIENT LOGISTICS, PRODUCTION, AND
DISTRIBUTION CHANNELS.
DIGITAL RECORDS.
39.
40. • RURAL MARKET.
ROBUST CONSUMPTION.
70% INDIAN HOUSEHOLDS.
2/5 OF THE COUNTRY’S TOTAL
CONSUMPTION PIE.
ACCOUNTS TO 45% OF GDP.
41. • FDI IN RETAIL SECTOR WILL RESOLVE
PROBLEMS REGARDING FOREIGN EXCHANGE
IN INDIA.
• THE LIFE-LONG BASIC NEEDS WILL
KEEP ON DRIVING THE RETAIL
INDUSTRY.
42.
43. • MAJOR CHALLENGE FACED BY ORGANIZED RETAIL SECTOR: IN
RETAIL, OVER 70 PER CENT OF THE LABOR FORCE IN BOTH
SECTORS COMBINED (ORGANIZED AND UNORGANIZED) IS EITHER
ILLITERATE OR EDUCATED BELOW THE PRIMARY LEVEL.
• LABOR LAWS
44. • A STRONG COMPETITION FROM MOM AND POP SHOPS:-
EASILY ACCESSIBLE & APPROACHABLE.
PROVIDE SERVICES LIKE FREE HOME DELIVERY AND
GOODS ON CREDIT.
THEY CHANGE CONSUMER FOCUS.
45. • PANTALOONS • TESCO
GLOBAL
• RELIANCE
INDIAN
• WALMART
• BHARTI RETAIL • METRO
• RPG • CARREFOUR
• LIFESTYLE • B&Q
• K RAHEJA • TARGET
• SUBHIKSHA
• PIRAMYD
• TRENT
• VISHAL GROUP
• BIG BAZAAR
• WESTSIDE
47. FORMAT AVERAGE SIZE
CONVENIENCE STORES 800 SQ. FEET
DISCOUNT STORES 1000 SQ. FEET
CATEGORY KILLERS 8000 SQ. FEET
SPECIALTY STORES SINGLE-CATEGORY
SHOP-IN-SHOP WITHIN LARGE MALLS
48. FORMAT AVERAGE SIZE
SUPERMARKET LARGE IN SIZE
TYPICAL IN LAYOUT
DEPARTMENT STORES 10,000 – 60,000 SQ. FEET
CASH AND CARRY 75,000 SQ. FEET
HYPERMARKETS 50,000 – 1,00,000 SQ. FEET
49. • MARKET POWER IS IN HANDS OF UNORGANIZED RETAIL.
UNORGANIZED •95%
ORGANIZED •5%
• POTENTIAL OF INDIAN MARKET IS US$ 200 BILLION
WHEREAS INDIA IS JUST EARNING ITS 3%.
51. IN INDIA EVERY YEAR THERE IS PILFERAGE OF US$ 65 BILLION
WHEREAS IN USA IT IS JUST 1-2%.
DUE TO LACK OF PROPER STORAGE INFRASTRUCTURE POST-
HARVEST LOSSES OF FARM PRODUCE IS RS. 1 TRILLION CR.
ANNUALLY.
52. IN TERMS OF CORRUPTION INDIA STANDS AT 85TH
POSITION. BECAUSE OF PAPER WORK, CORRUPTION IS
PRESENT ALONG THE ENTIRE SUPPLY CHAIN.
IN INDIA, THERE ARE ADDITIONAL 2-3
INTERMEDIARIES AS COMPARED TO USA.
i. THEY DOMINATE THE VALUE CHAIN.
ii. THEY FLOUT MANDI NORMS & THEIR PRICING
LACKS TRANSPARENCY.
53. INDIA IS STILL IN DEVELOPING STAGE IN INSTALLING
AND MANAGING AN EFFECTIVE IT SYSTEM ESPECIALLY
IN RURAL AREAS WHICH HAMPERS THE OVERALL
GROWTH OF ORGANIZED RETAIL SECTOR.
54. BANKS ARE RELUCTANT TO FINANCE RETAILERS
BECAUSE OF FALLING DEMAND OF ORGANIZED
RETAILERS IN INDIA AS IT HAS WITNESSED FAILURE OF
MANY STORES LIKE SPENCER'S, SUBHIKSHA, ETC.
55. • TAXATION LAWS IN INDIA FAVORS ONLY SMALL RETAIL
BUSINESSES.
• IMPLEMENTATION OF NON-UNIFORM VAT ACROSS
STATES.
• OCTROI AND ENTRY TAX IN SOME STATES.
56. • NO AUTOMATIC APPROVAL FOR FDI : ONLY 51% FDI IS
ALLOWED TO ONE BRAND SHOPS IN INDIAN RETAIL SECTOR.
• COMPLICATIONS IN ISSUE OF LICENSES : LIKE A
HYPERMARKET IN MUMBAI MUST APPLY FOR 29 UNIQUE
LICENSES & THEN WHEN IT HAS TO COME UP WITH SECOND
STORE IT HAS TO APPLY FOR SAME 29 LICENSES ALL OVER
AGAIN.
59. • INDIAN RETAIL SECTOR :
EMPLOYS 8% (35 MILLION)OF THE WORKING POPULATION.
COULD YIELD 12 TO 15 MILLION RETAIL JOBS IN THE
COMING FIVE YEARS.
• OUT OF WHICH ORGANIZED SEGMENT IS ABOUT 0.3 MILLION.
• RETAIL SECTOR GREW AT 9.4% ON REAL TERMS & 15.4% ON
NOMINAL TERMS.
60.
61. MBA GRADUATES WITH 5-
10YEARS OF EXPERIENCE
GRADUATES WITH 2-5YEARS
OF EXPERIENCE
GRADUATES/ 12TH PASS/
10TH PASS
GRADUATES/ 12TH PASS/
10TH PASS
62. • THE RETAILERS ASSOCIATION OF INDIA (RAI)
- DIPLOMA AND DEGREE PROGRAMS IN RETAILING
- BHARTI RETAIL AND VISHAL RETAIL
- 5,000 TRAINED PERSONS
66. FDI CAN BE A POWERFUL CATALYST TO SPUR
COMPETITION IN THE RETAIL INDUSTRY.
IT CAN BRING ABOUT:
SUPPLY CHAIN IMPROVEMENT
INVESTMENT IN TECHNOLOGY
MANPOWER AND SKILL DEVELOPMENT
EFFICIENT SMALL AND MEDIUM SCALE INDUSTRIES
INCREASE IN EXPORTS
67. 100% FDI IN SINGLE BRAND
RETAIL.
51% FDI IN MULTI BRAND
RETAIL.
68. THE RS18,673 BILLION (US$401BILLION) INDIAN RETAIL MARKET
IS ONLY 3 % OF GLOBAL RETAIL.
OF THIS ONLY 6% IS ORGANISED RETAIL AS OF 2010.
THE REST 94% REMAINS UNORGANIZED.
BUT SURPRISINGLY, INDIAN RETAIL SECTOR ACCOUNTS FOR 22% OF
THE COUNTRY'S GROSS DOMESTIC PRODUCT(GDP) AND CONTRIBUTES
TO 8 % OF THE TOTAL EMPLOYMENT.
HENCE, IF WE OPEN UP OUR RETAIL SECTOR, THEN OUR DESI
RETAILERS AND THE MILLIONS OF KIRANA STORES WILL GO OUT OF
BUSINESS.
INDIANS WILL BE DRAINED OF ALL THEIR HARD EARNED MONEY
THROUGH CONSUMERISM.
MONEY DRAINED OUT OF OUR COUNTRY.
69. THE CURRENT FDI RELAXATION COMES WITH A
CONDITION : 30% OF SOURCING OF ALL PRODUCTS
HAS TO BE DONE FROM INDIAN SUPPLIERS/SMES.
THIS RECOMMENDATION CAN CREATE MUCH
NEEDED EMPLOYMENT IN INDIA.
70. FOOD WASTED IN FCI GODOWNS COULD HAVE FED 2500 LAKH
FAMILIES FOR 10 YEARS!!!
A FRESH ESTIMATE FROM THE MINISTRY OF FOOD PROCESSING
SAYS A WHOPPING RS 58,000 CRORE WORTH OF AGRICULTURE
FOOD ITEMS GET WASTED IN THE COUNTRY EVERY YEAR.
THAT’S ALMOST 50% OF THE TOTAL ANNUAL AGRICULTURAL
PRODUCE.
HENCE, OUR COUNTRY’S SUPPLY CHAIN INFRASTRUCTURE IS
GROSSLY UNDER DEVELOPED.
FDI IN RETAIL CAN RESULT INTO DEVELOPING “FARM-TO-FORK”
INFRASTRUCTURE CONSISTING OF INTEGRATED STORAGE, COLD
CHAIN AND TRANSPORT LINKS. A MUCH NEEDED REPAIR OF OUR
GROSSLY LEAKING DISTRIBUTION SYSTEM
71. SHOPPERS PANTALOON TIMEX INDIA
LIFESTYLE
STOP HAS WILL OPEN
PLANS TO RETAIL INDIA
PLANS TO ANOTHER 52
HAVE MORE (PRIL) PLANS
INVEST RS 250 STORES BY
THAN 50 TO INVEST US$
CRORE TO MARCH 2011
STORES 77.88 MILLION
OPEN 15 NEW TAKING ITS
ACROSS INDIA TO ADD UP TO
SUPERMARKETS TOTAL STORE
BY 2012–13. EXISTING 2.4
IN THE COMING COUNT TO 120
MILLION SQ FT
THREE YEARS. RETAIL SPACE. .
72.
73. • INVESTMENT INTO WAREHOUSE AND COLD STORAGE
CHAIN WILL RESULT IN SIGNIFICANT EFFICIENCY ON
SUPPLY CHAIN.
• FARMERS BENEFITED THROUGH DIRECT MARKETING
AND CONTRACT FARMING PROGRAMME.
• IMPROVES FARM PRODUCTION THROUGH MODERN
TECHNIQUES.
• INCREASING AVAILABILITY OF LOW INTEREST CREDIT
FOR FARMERS.
74. Expected Growth
• IN THE LAST FOUR YEAR, THE
CAGR 1.3 CONSUMER SPENDING IN INDIA
1.4 10%
CLIMBED UP TO 75%.
1.2
• BY THE YEAR 2013, THE
1 0.83
ORGANIZED SECTOR IS ALSO
0.8
0.59 EXPECTED TO GROW AT A
0.6 CAGR* OF 40%.
0.35
0.4 • THE TOTAL NUMBER OF
0.2 SHOPPING MALLS IS EXPECTED
0 TO EXPAND AT A CAGR* OF
2008 2011 2013 2018 OVER 18.9 PER CENT BY 2015.
* CAGR – COMPOUND ANNUAL GROWTH RATE
75. THE INITIAL CAP ON INVESTMENT COULD BE PEGGED AT 49%.
FDI SHOULD BE LEVERAGED TO CREATE BACK-END INFRASTRUCTURE.
FDI WILL BE A POWERFUL DRIVER TO CURB INFLATION.
RESTRICT THE NUMBER OF STORES THAT CAN BE OPERATED IN A
CITY.
ALLOW ACCESS TO THE SMALL RETAILERS TO THE STORES THROUGH
SPECIAL WINDOWS.
76. OPERATIONAL EFFICIENCIES.
BEST DEAL TO THE FINAL CUSTOMER.
TRUE GLOBALIZATION.
Varied window displat : now a days retailers know that if your product is dosplayed properly acc. to the culture of the state you are operating in , will definaltey help you
This is not all there is still more
In 2881, India had the highest shop density in the world, with 11 outlets for every 1,888people.. The high density restricts their scope of expansion, and thereby ofupgrading. This also means that, except in the case of severely segmented markets, thissector stands little chance of competing against large retailing corporations operatingwith economies of scale.
It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
technological know how, soil quality improvement, pesticide and fertilizer usage,grading, sorting, capabilities and increasing availability of low interest credit forfarmers.
After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.
After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.
After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.
After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.