Indian retail sector to open up to FDI soon
As citizens of the world's largest democracy, we Indians are trusted to choose our own government. But, until recently, we were not free to choose what we wanted to buy. With the onset of liberilization things started to change namely in IT, biotech, manufacturing, banking and other sectors.
The next in line to open up for FDI based on the signs from the center is the retail sector. Benefiting from this will be the common middleclass Indian who will now be able to purchase his groceries much cheaper and in a relaxed and convenient manner, this being made possible by the economies of scale and professional retailing practices utilized by global retailers. Numerous major global retailers are at the Indian doorstep waiting for the green signal. India would also further benefit from the additional jobs that professional cash and carry retailing would generate.
The next in line to open up for FDI based on the signs from the center is the retail sector. Benefiting from this will be the common middleclass Indian who will now be able to purchase his groceries much cheaper and in a relaxed and convenient manner, this being made possible by the economies of scale and professional retailing practices utilized by global retailers. Numerous major global retailers are at the Indian doorstep waiting for the green signal. India would also further benefit from the additional jobs that professional cash and carry retailing would generate.
Prime Minister Dr Manmohan Singh is readying ally communist parties leaders to accept FDI in retail trade – the announcement is expected soon, major FDI is expected from the Europe. The Indian retail sector will also be a hot topic at the EU India summit this week
posted by Arun at 11:45 AM
2 Comments:
Its good to hear that India is opening up its retail sector to FDI. But the communist party is a big hurdle in India's progress. They should understand that their theories and idelogies which was created couple of decades back will no longer work in this new economy.
With the recent announcements of yet another closure of the proposed disinvestment in Government PSU like BHEL etc, the chances of FDI in Retailing in India is a distant dream. BJP and the Left are both opposed to opening up of the Retail Sector and within the government giving into Left's pressure, the outcome is nothing short of anyone's expectation.
The only silver lining is the government has double standards and a backdoor entry for every single policy. With the so called entry option through the Franchise route, every international brand and retail company has already set foot into India or is stepping in. We are already working in an international environment with International Brands in every product category. Many Indian brands and companies have just vanished over the last 15 years with the governments double standards. Retailing is no exception to this and although there is a delay in opening up, the sector would be opened sometime in the future.
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