Fdi in Indian Retail Sector
Introduction
What is FDI Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of the economy of the investor.
What is Retailing Retailing is a distribution channel function where one organization buys products from supplying firms or manufactures the product themselves, and then sells these directly to consumers. A retailer is a reseller (i.e., obtains product from one party in order to sell to another) from which a consumer purchases products.
Indian Retail Sector Indian retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country 's GDP. According to this year’s Global Retail Development Index, India is positioned as the leading destination for retail investment. There are about 300 new malls, 1,500 supermarkets and 325 departmental stores being built in the cities very soon.
The Indian retail sector is now worth about $250bn (£140bn) a year, but it is heavily underdeveloped. Well over 95% of the market is made up of small, uncomputerised family-run stores. Now there are finally signs that the Indian government is dropping its traditionally protectionist stance and opening up its retail market to greater overseas investment. Recently it eased restrictions on foreign investment, allowing overseas retailers to own 51% of outlets as long as they sell only single-brand goods.
A shopping revolution is ushering in India where, a large population between 20-34 age groups in the urban regions is boosting demand by 11.1 percent in 2004-05 to an Rs 23,308 purchasing power. This has resulted in huge international retail investment and a more liberal FDI.
Evolution of Indian Retail The era of Indian retail
What is FDI Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of the economy of the investor.
What is Retailing Retailing is a distribution channel function where one organization buys products from supplying firms or manufactures the product themselves, and then sells these directly to consumers. A retailer is a reseller (i.e., obtains product from one party in order to sell to another) from which a consumer purchases products.
Indian Retail Sector Indian retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country 's GDP. According to this year’s Global Retail Development Index, India is positioned as the leading destination for retail investment. There are about 300 new malls, 1,500 supermarkets and 325 departmental stores being built in the cities very soon.
The Indian retail sector is now worth about $250bn (£140bn) a year, but it is heavily underdeveloped. Well over 95% of the market is made up of small, uncomputerised family-run stores. Now there are finally signs that the Indian government is dropping its traditionally protectionist stance and opening up its retail market to greater overseas investment. Recently it eased restrictions on foreign investment, allowing overseas retailers to own 51% of outlets as long as they sell only single-brand goods.
A shopping revolution is ushering in India where, a large population between 20-34 age groups in the urban regions is boosting demand by 11.1 percent in 2004-05 to an Rs 23,308 purchasing power. This has resulted in huge international retail investment and a more liberal FDI.
Evolution of Indian Retail The era of Indian retail
Bibliography: http://www.businessinsights.biz http://www.indianground.com http://www.businessgyan.com http://www.indiaretailing.com www.legalserviceindia.com www.indianrealtynews.com