|Impact of FDI on Indian Consumer Goods Retail Industry |
Revised Single and Multi Brand Reatil Trading Policies 6
Salient Features Single-brand Retail 6
Salient Features Multi-brand Retail 6
Overview of Indian Retail Sector 8
Impact of FDI: 10
Impact on Industry and incumebent players 11
Impact on Farming Communities 15
Impact on Mom and Pop stores 16
Challenges of Retailing in India 20
Political Uncertainty and Risk 21
Fragmented logistics 22
Human Resources 23
Real estate and Rent 23
Administrative & beaurocratic Challenges 23
Complex Indirect Tax Structure 23
The opening up of Indian economy for FDI retail could not have come at right time than this. Recently, the Indian economy came under heavy criticism for its rampant corruption, high inflation, high interest rates, and henceforth slower GDP growth projection (Crisil & Moody’s revised forecast to 5.5% for 2012-13) against potential of economy to grow at 9%. These macroeconomic factors have affected the sentiment factors of investment of industry powerhouses leading to vicious cycle of economic slowdown. The Government of India, in an effort to control fiscal deficit to target 5.2%, were reluctant to stretch the discretionary spending/investment to boost the investment sentiments of businesses (so called “ waking up the animal instinct of businesses” by Prime Minister Manmohan Singh). GOI was... [continues]
Cite This Essay
(2013, 02). Impact of Fdi on Indian Consumer Goods Retail Industry. StudyMode.com. Retrieved 02, 2013, from http://www.studymode.com/essays/Impact-Of-Fdi-On-Indian-Consumer-1396575.html
"Impact of Fdi on Indian Consumer Goods Retail Industry" StudyMode.com. 02 2013. 2013. 02 2013 <http://www.studymode.com/essays/Impact-Of-Fdi-On-Indian-Consumer-1396575.html>.
- MLA 7
"Impact of Fdi on Indian Consumer Goods Retail Industry." StudyMode.com. StudyMode.com, 02 2013. Web. 02 2013. <http://www.studymode.com/essays/Impact-Of-Fdi-On-Indian-Consumer-1396575.html>.
"Impact of Fdi on Indian Consumer Goods Retail Industry." StudyMode.com. 02, 2013. Accessed 02, 2013. http://www.studymode.com/essays/Impact-Of-Fdi-On-Indian-Consumer-1396575.html.