Impact of Fdi on Indian Consumer Goods Retail Industry
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|Impact of FDI on Indian Consumer Goods Retail Industry |
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Contents
Abstract 2
Introduction 4
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
Demographics 20 Political Uncertainty and Risk 21 Infrastructure 22 Fragmented logistics 22 Human Resources 23 Real estate and Rent 23 Administrative & beaurocratic Challenges 23 Complex Indirect Tax Structure 23
Recommendations 24
Conclusion 27
References 29
Appendices 30
Abstract
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
|Impact of FDI on Indian Consumer Goods Retail Industry |
| |
| |
Contents
Abstract 2
Introduction 4
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
Demographics 20 Political Uncertainty and Risk 21 Infrastructure 22 Fragmented logistics 22 Human Resources 23 Real estate and Rent 23 Administrative & beaurocratic Challenges 23 Complex Indirect Tax Structure 23
Recommendations 24
Conclusion 27
References 29
Appendices 30
Abstract
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
References: |Sr. No |City |State/Territory |Population (2011) | |1 |Mumbai |Maharashtra |18,414,288 |