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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Revised Single and Multi Brand Reatil Trading Policies6

Salient Features Single-brand Retail6
Salient Features Multi-brand Retail6
Overview of Indian Retail Sector8

Impact of FDI:10

Impact on Industry and incumebent players11
Impact on Farming Communities15
Impact on Mom and Pop stores16
Challenges of Retailing in India20

Political Uncertainty and Risk21
Fragmented logistics22
Human Resources23
Real estate and Rent23
Administrative & beaurocratic Challenges23
Complex Indirect Tax Structure23





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...
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