Retail Sector and Foreign Direct Investment in India
Retail Sector and Foreign Direct Investment in India Sagar G 3rd Semester, Department of Management Studies Rajeev Institution of Technology, Hassan wavesagar9@gmail.com
In many countries, the retail dimension has gone well ahead the middle class clientele to penetrate the poor and its profound and rapid transformation has not parted India. The modern-day retail in India is reflected in rambling shopping centre, malls and huge complexes offer shopping, entertainment and food under one roof. There has been considerable growth in retail business in recent past and is hovering for much faster growth in coming days.
Though emerging market economies have gone well ahead and reaped the benefits of modern retail through FDI’s, India is still at its fork with regard to retail sector. The major role of FDI in supplementing domestic resources and ensuring employment generation in development of an economy is unquestionable but, given the robust growth to various retail dimensions, the current scenario of Indian retail sector can certainly be bright and promising.
Key Words: Retail, FDI, Indian Economy
Introduction Indian retail sector is highly fragmented and one of the most vibrant and rapidly growing industries with several players entering the market. The Indian retail sector is divided into organised and unorganised sectors. Organised retailing refers to trading activities undertaken by licensed retailers, like corporate-backed hypermarkets and retail chains and also the privately owned large retail businesses. Unorganised retailing on the other hand refers to the traditional low-cost retailing, like the small local kirana shops and owner manned general store. This shows a great potential for the organised retail industry to prosper in India, as the market for the final consumption in India is very large. Retail trade is largely in the hands of private independent owners and distributor’s for fast moving consumer goods consisting of
In many countries, the retail dimension has gone well ahead the middle class clientele to penetrate the poor and its profound and rapid transformation has not parted India. The modern-day retail in India is reflected in rambling shopping centre, malls and huge complexes offer shopping, entertainment and food under one roof. There has been considerable growth in retail business in recent past and is hovering for much faster growth in coming days.
Though emerging market economies have gone well ahead and reaped the benefits of modern retail through FDI’s, India is still at its fork with regard to retail sector. The major role of FDI in supplementing domestic resources and ensuring employment generation in development of an economy is unquestionable but, given the robust growth to various retail dimensions, the current scenario of Indian retail sector can certainly be bright and promising.
Key Words: Retail, FDI, Indian Economy
Introduction Indian retail sector is highly fragmented and one of the most vibrant and rapidly growing industries with several players entering the market. The Indian retail sector is divided into organised and unorganised sectors. Organised retailing refers to trading activities undertaken by licensed retailers, like corporate-backed hypermarkets and retail chains and also the privately owned large retail businesses. Unorganised retailing on the other hand refers to the traditional low-cost retailing, like the small local kirana shops and owner manned general store. This shows a great potential for the organised retail industry to prosper in India, as the market for the final consumption in India is very large. Retail trade is largely in the hands of private independent owners and distributor’s for fast moving consumer goods consisting of
References: Articles Sinha, P.K, Bannerjee and Uniyal D.P (2002), “Deciding Where to Buy: Store Choice Behaviour of Indian Shoppers”, Vikalpa, Vol. 27(2), pp. 13 – 28. Fernandes M, Gadi C, Khanna A, Mitra P and Narayanaswamy S (2000), “India’s Retailing Comes of Age”, Mckinsey Quarterly, 4, pp. 95 – 102. Sarma M.K, (2000), “Some Issues in Retail Management”, Vision 4(1), pp. 35 – 40. Radhakrishnan K, (2003), “Original Retail: Forging Ahead”, Praxis, 4(1), pp. 47 – 51, Technopak Analysis: Emerging Trends in Indian Retail and Consumer 2011 Website: www.fibre2fashion.com